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The Fed's monetary policy would be successful in promoting real GDP growth if it increased the money supply. This would cause prices to rise, which

The Fed's monetary policy would be successful in promoting real GDP growth if it increased the money supply. This would cause prices to rise, which would lead to an increase in aggregate demand and, in turn, an increase in real GDP. However, this policy would not be money neutral, as the money supply would increase and there would be inflation.

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