When the Federal Reserve Wishes To, in the Long Run

question 25

Multiple Choice

When the Federal Reserve wishes to, in the long run, increase real GDP it

• A)will increase the money supply by buying bonds.
• B)will increase the money supply by selling bonds.
• C)will decrease the money supply by selling bonds.
• D)has no policy options that will accomplish this.

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Definitions:

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Detailed, precise descriptions of the terms, conditions, and obligations agreed upon by parties in a contract, often defining the scope, quality, and timelines of work or services.

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