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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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    In a Binding Situation, the Fed Rule Calls for
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In a Binding Situation, the Fed Rule Calls for

Question 138

Question 138

Multiple Choice

In a binding situation, the Fed rule calls for


A) a negative interest rate.
B) a positive interest rate.
C) a negative price level.
D) a negative output level.

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