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    Principles of Macroeconomics Study Set 12
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    Exam 12: Policy Effects and Cost Shocks in the Asad Model
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    When the Economy Is near Capacity, the Fed Would Lower
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When the Economy Is near Capacity, the Fed Would Lower

Question 82

Question 82

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When the economy is near capacity, the Fed would lower the interest rate in response to an increase in government spending.

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