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If the Fed's Goal Is to Keep the Interest Rate

question 94

Multiple Choice

If the Fed's goal is to keep the interest rate fixed,a contractionary fiscal policy must be accompanied by ________ monetary policy that shifts the LM curve to the ________.


Definitions:

Reporters Without Borders

An international non-profit organization that promotes and defends the freedom of the press and the right to information worldwide.

Norway

A country in Northern Europe known for its fjords, mountains, and deep coastal inlets.

Sweden

A country in Northern Europe known for its high standard of living, robust social welfare system, and contributions to global innovation and culture.

Finland

Finland is a Nordic country located in northern Europe, known for its stunning natural landscapes, high quality of life, and robust welfare system.

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