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Suppose the Fed decreases discount rate.

As a result of this policy, what will happen to the Aggregate Demand (AD)?

 

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Suppose the Fed increases discount rate.

As a result of this policy, what will happen to the Aggregate Demand (AD)?

 

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Suppose interest rates increase.

As a result of this, what will happen to consumption (C) and investment (I)?

 

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Suppose interest rates decrease.

As a result of this, what will happen to consumption (C) and investment (I)?

 

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Suppose the Fed decreases required reserve ratio.

As a result of this policy, what will happen to price level and GDP in the short-run?

 

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Suppose the Fed increase discount rate.

As a result of this policy, what will happen to price level and GDP in the short run?

 

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