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principles of macroeconomics

What are the “powers of the Federal Reserve

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    Q : Analyzing number of event that

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    What occurs to economy, when credit availability is limited and credit is made costlier? Answer: Aggregate demands falls

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    The hypothetical information in the following table shows what the economic situation will be in 2015 if the Fed does not use monetary policy: Year Potential GDP Real GDP Price Level 2014 $15.2 trillion $15.2 trillion 110.0 2015 $15.6 trillion $15.8 trillion

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