If there is an autonomous increase in spending a rightward, Business Economics

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If there is an autonomous increase in spending a rightward

If there is an autonomous increase in spending (a rightward shift in the aggregate demand curve) and the Fed wishes to hold real income constant, then the Fed would:

None of the above

Hold the money supply constant

Decrease the money supply yielding a leftward shift in the aggregate demand curve.

Increase the money supply yielding a rightward shift in the aggregate demand curve.

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Business Economics: If there is an autonomous increase in spending a rightward

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Business Economics: If there is an autonomous increase in spending a rightward

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