If the output gap is positive, then the Federal Reserve will use its floor framework to _____ the federal funds rate, influence short- and long-term interest rates _____, and _____ total spending in the economy.
A)lower; downward; decrease
B)lower; downward; increase
C)raise; upward; increase
D)raise; upward; decrease

Question

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The Answer of If the output gap is positive, then the Federal Reserve will use its floor framework to _____ the federal funds rate, influence short- and long-term interest rates _____, and _____ total spending in the economy.
A)lower; downward; decrease
B)lower; downward; increase
C)raise; upward; increase
D)raise; upward; decrease

If the Output Gap Is Positive, Then the Federal Reserve