When the Fed changes tax rates, interest rates change, and this changes real GDP.

Name: When the Fed changes tax rates, interest rates change, and this changes real GDP.
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The Federal Reserve does not have the authority to change tax rates; that is the responsibility of the government's fiscal policy. The Fed influences the economy primarily through monetary policy, including adjusting the federal funds rate which can impact interest rates and subsequently affect real GDP.

When the Fed Changes Tax Rates, Interest Rates Change, and This