The FOMC increases real interest rates. Explain how each component of GDPconsumption, investment, government spending, and net
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The FOMC increases real interest rates. Explain how each component of GDP—consumption, investment, government spending, and net exports—changes in response, and why. What happens to output, inflation, and unemployment? What would have led the FOMC to increase interest rates?
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Answer When the Federal Open Market Committee FOMC increases real interest rates it affects each component of GDPconsumption investment government spending and net exportsdifferently Consumption Highe...View the full answer
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Related Book For 
Principles Of Economics
ISBN: 9781319330156,9781319419769
2nd Edition
Authors: Betsey Stevenson, Justin Wolfers
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