The Fed increases the quantity of money to counteract
A)a federal budget surplus.
B)negative net exports.
C)an inflationary gap.
D)a recessionary gap.
E)inflation.

Name: The Fed increases the quantity of money to counteract A)a federal budget surplus. B)negative net exports. C)an inflationary gap. D)a recessionary gap. E)inflation.
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Question

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The Fed increases the quantity of money to counteract a recessionary gap by stimulating economic activity and encouraging spending and investment.

The Fed Increases the Quantity of Money to Counteract