In the Keynesian Model,suppose the Fed Sets a Target for the Real

question 14

Multiple Choice

In the Keynesian model,suppose the Fed sets a target for the real interest rate.If the IS curve shifts to the left,and the Fed wants to keep output unchanged

• A)taxes will increase.
• B)the money supply will decline.
• C)the real interest rate will decrease.
• D)taxes will decrease.

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