When the Federal Reserve wishes to, in the short run, increase real GDP it

Name: When the Federal Reserve wishes to, in the short run, increase real GDP it
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Question

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When the Federal Reserve wishes to increase real GDP in the short run, it will use expansionary monetary policy. This involves increasing the money supply by buying bonds, which lowers interest rates, making borrowing and spending more attractive to consumers and businesses. This increased spending leads to an increase in real GDP.

When the Federal Reserve Wishes To, in the Short Run