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Assume that currently, the US economy is characterized by the following macroeconomic conditions: Growth rate of real GDP = -1.0% ; unemployment = 9.0% ;
Assume that currently, the US economy is characterized by the following macroeconomic conditions: Growth rate of real GDP = -1.0% ; unemployment = 9.0% ; inflation rate = -0.5%. Which of the following actions of the Federal Reserve would be most likely, all else equal? Question 23 options: raise the discount rate raise the reserve requirement ratio reduce the size of the budget deficit sell US Treasury bonds purchase US Treasury bonds
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