The Fed can use expansionary monetary policy to lower interest rates to stimulate aggregate demand.

Name: The Fed can use expansionary monetary policy to lower interest rates to stimulate aggregate demand.
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When the Fed uses expansionary monetary policy, it typically involves buying government bonds or other securities, which increases the money supply and lowers interest rates. Lower interest rates can encourage borrowing and spending, which can stimulate aggregate demand in the economy.

The Fed Can Use Expansionary Monetary Policy to Lower Interest