Using the aggregate supply and demand model, assume the economy is operating along the intermediate portion of the aggregate supply curve. An increase in the money supply will increase the price level and:
a. lower both the interest rate and real GDP.
b. raise both the interest rate and real GDP.
c. lower the interest rate and raise GDP.
d. raise the interest rate and lower real GDP.
c
Economics
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What will be an ideal response?
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________ can intervene directly in the foreign exchange market by buying or selling dollars
A) Congress B) The Fed C) The International Monetary Fund D) The U.S. Treasury department
Economics