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) lowers; decreases
C) raises; has no effect on
D) lowers; increases
E) raises; decreases
E
Economics
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a. True b. False
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Indicate whether the statement is true or false
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