All else equal, if the real GDP of the United States decreases, the equilibrium interest rate will _____. In this case, the Federal Reserve can _____ Treasury securities in the open market to bring the interest rate back to its original level.

Question

Quizplus · Accepted Answer

If the real GDP of the United States decreases, the equilibrium interest rate will decrease. In this case, the Federal Reserve can sell Treasury securities in the open market to bring the interest rate back to its original level.

All Else Equal, If the Real GDP of the United