the real interest rate to If the output gap is negative, then relative to the neutral interest rate, the Federal Reserve will drive consumption and investment. O lower, down raise; up raise; down O lower, up

the real interest rate to If the output gap is negative, then relative to the neutral interest rate, the Federal Reserve will drive consumption and investment. O lower, down raise; up raise; down O lower, up

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 5CQQ

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Question

the real interest rate to
If the output gap is negative, then relative to the neutral interest rate, the Federal Reserve will
drive
consumption and investment.
O lower; down
raise; up
O raise; down
lower, up

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