If Businesses and Consumers Become Pessimistic,the Federal Reserve Can Attempt

question 18

Multiple Choice

If businesses and consumers become pessimistic,the Federal Reserve can attempt to reduce the impact on the price level and real GDP by

• A)increasing the money supply,which raises interest rates.
• B)increasing the money supply,which lowers interest rates.
• C)decreasing the money supply,which raises interest rates.
• D)decreasing the money supply,which lowers interest rates.

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