Which one of these policies should the Fed engage in if unemployment is 9% and inflation...

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Which one of these policies should the Fed engage in if unemployment is 9% and inflation...

Which one of these policies should the Fed engage in if unemployment is 9% and inflation is 1.5%?

Select one:

a. Issue new government bonds and increase government borrowing

b. Sell government bonds through an Open Market Operation

c. Increase discretionary government spending

d. Raise the Required Reserves Ratio

e. Target a lower Federal Funds Rate

business economics

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Answer 1

Answer #1

Which one of these policies should the Fed engage in if unemployment is 9% and inflation is 1.5%?

e. Target a lower Federal Funds Rate

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