af planned aggregate spending in an economy can be written as PE 12,000 0.80Y-30,000, and potential output equals 48,750, what real interest rate must the Federal Reserve set to bring the economy to ful employment? Multiple Choice 25 percent

af planned aggregate spending in an economy can be written as PE 12,000 0.80Y-30,000, and potential output equals 48,750, what real interest rate must the Federal Reserve set to bring the economy to ful employment? Multiple Choice 25 percent

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If planned aggregate spending in an economy can be written as PAE- 12,000 + 0.8OY-30,000, and potential output equals 48,750, what real interest rate must the
Federal Reserve set to bring the economy to full employment?
Multiple Choice
75 percent
65 percent
55 percent
80 percent

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