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If the Combination R = 5% and Y = $100

Question 83

Multiple Choice

If the combination r = 5% and Y = $100 billion is on the Fed rule line, we know that the combination r = 7% and Y = $100 billion would represent


A) the Fed rule shifting to the right.
B) the Fed rule shifting to the left.
C) a movement up the Fed rule.
D) a movement down the Fed rule.

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