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Hello, I'm having trouble with this question. I attached a screenshot of it below. Suppose the Fed is worried because the economy is growing at

Hello, I'm having trouble with this question. I attached a screenshot of it below.

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Suppose the Fed is worried because the economy is growing at an unsustainable rate. Due to this concern, the FOMC will discuss the direction of monetary policy at its next meeting. In this circumstance, one action the Fed could take would be to u would make l loans. the discount rate. The Feds expectation is that this would make banks V cautions about making loans; and thus, banks As a result, the money supply would lV , and the nominal interest rate would V . As a result, Investment would V . Aggregate Demand would shift This action is referred to as V monetary policy. Of the Fed's policy tools, changing the discount rate is O A. the most important and most frequently used tool. O B. the strongest and least frequently used tool. 0 C. the weakest tool. 0 D. the weakest and least freuuentlv used tool. V , and Real GDP would until full employment is restored

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