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A country in short-run equilibrium is suffering from a recessionary or output gap. Which of the following monetary policies would help to lower unemployment, and
A country in short-run equilibrium is suffering from a recessionary or output gap. Which of the following monetary policies would help to lower unemployment, and what would be the impact of that policy on the value of the country's currency in foreign exchange markets? (3 points) Decreasing the money supply, which will cause appreciation Increasing the required reserve ration, causing currency appreciation Selling bonds on the open market, causing currency appreciation Purchasing bonds on the open market, causing currency depreciation Decreasing the discount rate, causing currency appreciation
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