# What is most likely to happen to the price level and real GDP if the Fed...

###### Question:

What is most likely to happen to the price level and real GDP if the Fed targets a lower Federal Funds Rate?

Select one:

a. Price level and real GDP will both increase

b. Price level and real GDP will both decrease

c. Price level will increase, but real GDP will decrease

d. Price level will decrease, but real GDP will increase

e. Real GDP will increase, but the price level would remain the same

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