ECONOMICS 1120164 - 84 84 Answer to MD2,%to5 PageRef:900-901\/5

ECONOMICS 1120164 - 84 84 Answer to MD2,%to5...

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84) Use the money demand and money supply model to show graphically and brieflyexplain the effect on the interest rate if real GDP increases.84)Page Ref: 900-901/518-519Learning Outcome: Macro-12: Explain how monetary policy influences interest rates, aggregatedemand, real GDP and inflation.MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.85) The ability of the Federal Reserve to use monetary policy to affect economic variables such as realGDP ultimately depends upon its ability to affect85)Page Ref: 904/522Learning Outcome: Macro-12: Explain how monetary policy influences interest rates, aggregate demand, realGDP and inflation.24
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86) An increase in interest rates
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