Other things equal,the level of real GDP will tend to increase in the short run:
A) if reserve requirements are decreased.
B) if there is a reduction in the discount rate.
C) if there is an open market purchase by the Fed.
D) all of the above

Question

Quizplus · Accepted Answer

All options (A, B, and C) represent expansionary monetary policies that increase the money supply, lower interest rates, and stimulate economic activity, leading to an increase in real GDP in the short run.

Other Things Equal,the Level of Real GDP Will Tend to Increase