If the economy is in a recessionary gap, the Federal Reserve should conduct _____ monetary policy by _____ the money supply.

Name: If the economy is in a recessionary gap, the Federal Reserve should conduct _____ monetary policy by _____ the money supply.
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Question

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If the economy is in a recessionary gap, the Federal Reserve should conduct expansionary monetary policy by increasing the money supply. This will stimulate aggregate demand and economic growth, helping to close the recessionary gap.

If the Economy Is in a Recessionary Gap, the Federal