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Suppose the FoMC's policy directive instructs the Trading Desk at the New York Fed to decrease the federal funds rate because the U.S. econorny is

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Suppose the FoMC's policy directive instructs the Trading Desk at the New York Fed to decrease the federal funds rate because the U.S. econorny is experiencing a recession with a high unemployment rate and low inflation and the FOMC wants to stimulate spending in the economy. If the FOMC wants to decrease the fed funds rate, then the Trading Desk traders will government securities. This results in a(n) in the loanable funds in the banking system. Consequently, there will be a(n) in interest rates. As a result; consumers will purchase and save , and businesses will invest Consequently, the aggregate demand curve will shift to the right, which shows that the unemployment rate has has , and the economy has been successfully stimulated. Suppose the FoMC's policy directive instructs the Trading Desk at the New York Fed to decrease the federal funds rate because the U.S. econorny is experiencing a recession with a high unemployment rate and low inflation and the FOMC wants to stimulate spending in the economy. If the FOMC wants to decrease the fed funds rate, then the Trading Desk traders will government securities. This results in a(n) in the loanable funds in the banking system. Consequently, there will be a(n) in interest rates. As a result; consumers will purchase and save , and businesses will invest Consequently, the aggregate demand curve will shift to the right, which shows that the unemployment rate has has , and the economy has been successfully stimulated

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