Business, 14.11.2019 20:31, teddylove2643

Suppose that you are a member of the board of governors of the federal reserve system. the post 2008 economy is experiencing a sharp rise in the inflation rate. a. in this case, the federal funds rate should be set equal to the discount rate. decreased. set at zero. increased. b. you recommend a contraction of the money supply by increasing the reserve ratio, decreasing the discount rate, or selling bonds. decreasing the reserve ratio or discount rate, or buying bonds. increasing the reserve ratio or discount rate, or selling bonds. decreasing the reserve ratio, increasing the discount rate, or buying bonds. c. you recommend a contraction of the money supply, which would increase the lending ability of the banking system, decrease the real interest rate, and increase investment spending, aggregate demand, and inflation. reduce the lending ability of the banking system, increase the real interest rate, and reduce investment spending, aggregate demand, and inflation. reduce the lending ability of the banking system, decrease the real interest rate, and increase investment spending, aggregate demand, and inflation. increase the lending ability of the banking system, decrease the real interest rate, and reduce investment spending, aggregate demand, and inflation.

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Suppose that you are a member of the board of governors of the federal reserve system. the post 2008...