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QUESTION
On June5, 2003, the European Central Bank acted to decrease theshort-term interest rate by half a percentage point to 2 percent.
On June5, 2003, the European Central Bank acted to decrease theshort-term interest rate by half a percentage point to 2 percent. Thebank's president at thetime, WillemDuisenberg, suggested that the bank could reduce rates further in the future.
The likely impacts of such a rate cut wereA. an increase in planned aggregate
