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Explain how the Federal Reserve's interest rate increases influence the following variables in the short...

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Accounting

Explain how the Federal Reserve's interest rate increases influence the following variables in the short run: household consumption, business investment, real GDP, and the price level. Insert a clearly labeled Aggregate Demand/Aggregate Supply graph to show the effect of a rise in interest rates on Aggregate Demand while the economy is in the intermediate range around potential real GDP. Describe your graph

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