The size of a fiscal stimulus package is adapted to the depth of each recession. Investors adapt their investment decisions to the interest rate. Economic agents expect next period's inflation to be equal to last period's inflation. Investors adapt their investment decisions to the inflation rate. Clear selection Suppose that Canada experiences a recession and, as a result, reduces imports of US goods. Using the short-run model, what will be the impact on the US economy? Pick all that apply. The PC curve will shift down Inflation will fall The IS curve will shift right Short run output will be negative The PC curve will shift up Inflation will rise Short run output will be zero Short run output will be positive Inflation will stay constant The IS curve will shift left NnSuppose the Fed wants to increase the money supply. Which open market operation will achieve this goal? Buy government bonds from the private sector. Sell government bonds from the private sector. Increase the fed funds rate. Lower the fed funds rate. Increase unemployment benefits