The Federal Reserve fears that the United States economy is growing too slowly and is stuck in a recession. To move the economy back to its potential GDP, the most likely policy action for the Fed is to ________ the federal funds and thus ________
A) raise; increase aggregate demand
B) raise; decrease aggregate demand
C) lower; increase aggregate supply
D) lower; decrease aggregate supply
E) lower; increase aggregate demand
E
Economics
You might also like to view...
In n-player games, any number of players between 4 and infinity can theoretically play
Indicate whether the statement is true or false
Economics
When the majority of voters have preferences very different from those of the median voter, then the median voter theorem will lead to accurate predictions of the outcomes of elections
Indicate whether the statement is true or false
Economics