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johnpaul92 johnpaul92
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8 years ago
In the Keynesian model, suppose the Fed sets a target for the real interest rate. If the IS curve shifts down and to the left, and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run, it will
A) shift the LR curve down.
B) not shift the LR curve.
C) shift the IS curve up and to the right.
D) shift the LR curve up.
Textbook 
Macroeconomics

Macroeconomics


Edition: 8th
Authors:
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supamansupaman
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8 years ago
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johnpaul92 Author
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8 years ago
Wow, you answered what I thought was impossible to answer, thank you!
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