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Suppose the Fed decreases interest rates by half of a percent. Which of the following is the Fed trying to accomplish as a result of

Suppose the Fed decreases interest rates by half of a percent. Which of the following is the Fed trying to accomplish as a result of this action?

Multiple Choice

  • a leftward shift of aggregate demand
  • a rightward shift of aggregate demand
  • a leftward shift of aggregate supply
  • a rightward shift of aggregate supply

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