When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand
B. increase; raise; decline
C. decline; lower; decline
D. decline; raise; decline
Answer: B
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A) accounting audit B) management advisory C) seller D) managing underwriter
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a. decrease in demand b. increase in demand c. no effect d. decrease in supply e. increase in supply
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