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Author Question: The Fed will raise the interest rate by the greatest amount when the economy is on the ________ part ... (Read 24 times)

Deast7027

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on: Apr 19, 2019

Question 1

If the economy is on the flat portion of the 
AS curve


◦ there is little crowding out of planned investment.
◦ there is almost complete crowding out of planned investment.
◦ consumption, but not government spending, crowds out planned investment.
◦ government spending, but not consumption, crowds out planned investment.

Question 2

The Fed will raise the interest rate by the greatest amount when the economy is on the ________ part of the 
AS curve and there is ________.


◦ flat; a decrease in taxes
◦ flat; an increase in taxes
◦ steep; a decrease in taxes
◦ steep; an increase in taxes
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Deast7027 on Apr 19, 2019

Jevvish

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Reply #1 on: Apr 19, 2019
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Deast7027

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Reply #2 on: Apr 19, 2019
Thanks


Jevvish

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Reply #3 on: Apr 19, 2019
Welcome :)


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