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In the Keynesian model, suppose the Fed sets a target for the money supply. If the IS curve shifts to the left, and the Fed
In the Keynesian model, suppose the Fed sets a target for the money supply. If the IS curve shifts to the left, and the Fed wants to keep output unchanged, what should the Fed do?
Select one:
a.Reduce taxes.
b. Reduce the money supply.
c. Increase taxes.
d.Increase the money supply.
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