Author Question: An increase in the output gap causes the demand for real balances A) to rise and the interest ... (Read 76 times)

Kikoku

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An increase in the output gap causes the demand for real balances
 
  A) to rise and the interest rate to fall.
  B) to fall and the interest rate to rise.
  C) and the interest rate to fall.
  D) and the interest rate to rise.

Question 2

In managing the monetary base, the Fed most often uses
 
  A) open market purchases.
  B) printing money.
  C) discount loans.
  D) tax increases.



mcinincha279

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Answer to Question 1

D

Answer to Question 2

A



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