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Business, 21.05.2021 17:00 reaperdraws

Fill in the blanks below. Possible options are given in the parentheses after each blank. If American households and firms expect that the economic conditions in the US will become worse in the near future, there will be a real impact on the US economy, in particular on the price level and real output level. However, the Federal Reserve could try to reduce the impact by (buying, selling) bonds. This action will result in a (higher, lower) level of money supply and a (higher, lower) level of interest rate. The effect of this interest rate change is that there will be (more, less) investment and (increased, decreased) real GDP.

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Fill in the blanks below. Possible options are given in the parentheses after each blank. If America...
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