The Fed boosts market confidence by stabilizing AD in times of uncertainty.

Question

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The Federal Reserve (Fed) can boost market confidence by stabilizing aggregate demand (AD) during times of uncertainty. This is often done through monetary policy tools, such as adjusting interest rates or providing liquidity to financial markets. By stabilizing AD, the Fed can help prevent a downturn in economic activity and calm fears of a recession or financial crisis, thereby boosting market confidence.

The Fed Boosts Market Confidence by Stabilizing AD in Times