When the Fed Buys Bonds in the Open Market, in the Product

question 145

Multiple Choice

When the Fed buys bonds in the open market, in the product market (the aggregate demand- aggregate supply model) ,

• A) real GDP will fall and the price level will rise.
• B) real GDP and the price level will rise.
• C) real GDP and the price level will fall.
• D) real GDP will rise and the price level will fall.

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