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-Use the Aggregate Supply/aggregate Demand Model in Figure 19

Question 74

Multiple Choice

  -Use the aggregate supply/aggregate demand model in Figure 19.4 to answer the following scenario.The European central bank reduces its interest rates,while the Federal Reserve maintains its federal funds rate.The economy initially moves from point __________ to point __________. A) a;d B) c;d C) b;c D) a;b E) a;c
-Use the aggregate supply/aggregate demand model in Figure 19.4 to answer the following scenario.The European central bank reduces its interest rates,while the Federal Reserve maintains its federal funds rate.The economy initially moves from point __________ to point __________.


A) a;d
B) c;d
C) b;c
D) a;b
E) a;c

Correct Answer:

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