To Eliminate a Recessionary Gap,the Fed Can

question 68

Multiple Choice

To eliminate a recessionary gap,the Fed can:

• A)increase the money supply as it will increase the interest rate and investment.
• B)increase the money supply as it will decrease the interest rate and increase investment.
• C)decrease the money supply as it will increase the interest rate and investment.
• D)decrease the money supply as it will decrease the interest rate and investment.
• E)decrease the money supply as it will increase the interest rate and decrease investment.

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