What might you expect to happen to real gdp


1. Explain how might the businesses and the consumers change their economic behavior when interest rates (IRs) decrease?

2. What might you expect to happen to real GDP (real output) and inflation rate if there is a decline in the money growth?

3. Is everybody worse-off when IRs rise?

4. Discuss why do the managers of financial institutions care so much about FED's policies?

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Macroeconomics: What might you expect to happen to real gdp
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