In 2012, the Federal Reserve announced that it would hold the federal fund rates near 0 percent "at least through mid-2015." This policy attempted to shift the

Question

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By holding the federal fund rates near 0 percent, the Federal Reserve aimed to make borrowing cheaper, thereby encouraging spending and investment. This policy is intended to increase overall economic demand, which is represented by a shift of the aggregate demand curve to the right.

In 2012, the Federal Reserve Announced That It Would Hold