Order the answer to: Assume a central bank follows a rule that requires it to take steps to keep the price level constant

Academic Help economy Order the answer to: Assume a central bank follows a rule that requires it to take steps to keep the price level constant

economy

Order the answer to: Assume a central bank follows a rule that requires it to take steps to keep the price level constant

Question Assume a central bank follows a rule that requires it to take steps
to keep the price level constant. If the price level fell because
of a decrease in aggregate demand and an increase in aggregate
supply that keeps output unchanged, then

Assume a central bank follows a rule that requires it to take steps to keep the price level constant. If the price level fell kept output unchanged, then O a. the central bank would have to raise interest rates which would decrease output. b. the central bank would have to raise interest rates which would increase output. c. the central bank would have to reduce interest rates which would decrease output. d. the central bank would have to reduce interest rates which would increase output.

Subject economy
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