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16) In the short run, monetary policy can A) lower the federal funds rate, thereby increasing the supply of loanable funds, and lowering the exchange
16) In the short run, monetary policy can
A) lower the federal funds rate, thereby increasing the supply of loanable funds, and lowering the exchange rate.
B) raise the federal funds rate and shift the aggregate demand curve leftward.
C) raise the federal funds rate, thereby decreasing the supply of loanable funds, raising the real interest rate, and decreasing investment.
D) All of the above answers are correct
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