If the AS and the AD Curve Intersect at a Level

question 115

Multiple Choice

If the AS and the AD curve intersect at a level of real GDP that exceeds potential GDP,then the appropriate monetary policy is one that ________ the federal funds rate and ________ aggregate demand.

• A)raises;increases
• B)raises;decreases
• C)lowers;increases
• D)lowers;decreases
• E)raises;has no effect on