In 2012, former Fed Chairman Ben Bernanke said that the Fed's policy had raised real GDP by almost 3 percent. Mr. Bernanke believed that the Fed's policy of keeping the federal funds rate ________ had resulted in an increase in ________.

Question

Quizplus · Accepted Answer

Bernanke's statement refers to the Federal Reserve's policy of keeping the federal funds rate low to stimulate the economy, which is believed to increase aggregate demand by making borrowing cheaper, encouraging spending and investment.

In 2012, Former Fed Chairman Ben Bernanke Said That the Fed's