Other Things Equal, the Level of Real GDP Will Tend

question 50

Multiple Choice

Other things equal, the level of real GDP will tend to increase in the short run:

• A)if reserve requirements are increased
• B)if there is an increase in the discount rate.
• C)if there is an open market sale by the Fed
• D)if the Fed pays higher interest on reserves
• E)if there is a reduction in the discount rate