Congress raises taxes and the Fed reduces money supply, then in the short run, the two policies would lead to: a. lower income but we don’t know if interest rate will rise or not. b. higher income but we don’t know if interest rate will rise or not. c. a lower interest rate but we don’t know if income will rise or not. d. a higher interest rate but we don’t know

Congress raises taxes and the Fed reduces money supply, then in the short run, the two policies would lead to: a. lower income but we don’t know if interest rate will rise or not. b. higher income but we don’t know if interest rate will rise or not. c. a lower interest rate but we don’t know if income will rise or not. d. a higher interest rate but we don’t know

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 19SQ

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