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Refer to the Figure Below

question 21

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Refer to the figure below.Based on the diagram, if potential output equals 5,000 and the real interest rate is 5%, then there is ______ gap and the Fed must ______ the real interest rate so that output will equal potential output. Refer to the figure below.Based on the diagram, if potential output equals 5,000 and the real interest rate is 5%, then there is ______ gap and the Fed must ______ the real interest rate so that output will equal potential output.   A) a recessionary; raise B) a recessionary; reduce C) no output; not change D) an expansionary; raise

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Definitions:

Holder In Due Course

A legal term for an individual or entity that has acquired a negotiable instrument in good faith and for value, and therefore has certain rights above the original payee.

Negotiates

The process by which parties come together to try and reach an agreement on a matter, often involving discussion and compromise.

Fictitious Payee Rule

A legal principle that holds a drawer of a check responsible when funds are obtained by fraud, if the drawer fails to exercise caution in issuing the check.

Immediate Loss

Financial damage or cost incurred directly as a result of an event, action, or decision, without any delay.

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