If the Fed wants to fight unemployment, it would ______________

Fill in the blank(s) with the appropriate word.

Answer: increase the money supply and lower interest rates

Economics

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If the Bush tax cuts were allowed to expire in 2010, the maximum personal income tax rate in the United States would have moved above 50 percent

a. True b. False Indicate whether the statement is true or false

Economics

In nations where the supply of real loanable funds is inelastic, the real risk-free interest rate is likely to:

a. To fluctuate more than the equilibrium quantity of loanable funds per period. b. Be very stable over time and not to react strongly on changes in demand. c. Be high compared to countries where the supply of real loanable funds is elastic. d. None of the above.

Economics