The Federal Reserve fears that the United States economy is growing too slowly and is stuck in a recession.To move the economy back to its potential GDP,the most likely policy action for the Fed is to ________ the federal funds and thus ________ .
A) raise;increase aggregate demand
B) raise;decrease aggregate demand
C) lower;increase aggregate supply
D) lower;decrease aggregate supply
E) lower;increase aggregate demand
Correct Answer:
Verified
Q155: If the Fed increases the quantity of
Q156: When there is a threat of inflation
Q157: In a recession,the Fed's monetary policy aims
Q158: Raising the federal funds rate shifts the
Q159: When the Fed worries about inflation,it _
Q161: President Reagan often stated he preferred supply
Q162: When the economy is in a recession,_
Q163: Do automatic fiscal stabilizers eliminate business cycles?
A)Yes
B)No,because
Q164: If the Fed raises the federal funds
Q165: Need-based spending _ during an expansion and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents