Business, 07.12.2019 02:31, Legojackson78

Consider the actions of the fed in response to the great recession. which of the following scenarios should the fed be worried about if its objective is increasing aggregate demand?

choose one:

a. people expect the fed to respond to the downturn with an expansionary policy.
b. increasing the money supply could decrease aggregate demand.
c. monetary policy is effective in the long run.
d. small changes in the federal funds rate would destabilize the economy.

Answers: 3

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Consider the actions of the fed in response to the great recession. which of the following scenarios...