To fight unemployment and close a recessionary gap, the Fed ________. A. stimulates aggregate demand by lowering
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To fight unemployment and close a recessionary gap, the Fed ________.
A. stimulates aggregate demand by lowering the federal funds rate, which increases the quantity of money B. stimulates aggregate supply by lowering the federal funds rate, which increases potential GDP C. increases employment, which increases real GDP D. increases bank reserves, which banks use to make new loans to businesses, which increases aggregate supply
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Related Book For
Essential Foundations Of Economics
ISBN: 9781786633255
8th Edition
Authors: Robin Bade, Michael Parkin
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