Decided to raise the target range for the federal funds rate

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In December 2015 the FOMC decided to raise the target range for the federal funds rate. Suppose that an increase in the federal funds rate has the effect of decreasing aggregate demand. show the potential effects of a decline in aggregate demand in an aggregate supply and aggregate demand graph. Assume normal downward-sloping aggregate demand and upward-sloping aggregate supply curves.

Reference no: EM13994499

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