Multiple Choice
If the Fed wanted to stimulate the economy to limit the effects of a recessionary gap, then it should ________ the federal funds rate in order to ________ the real interest rate and thereby ________ investment.
A) lower; lower; increase
B) lower; raise; increase
C) raise; raise; decrease
D) lower; lower; decrease
Correct Answer:

Verified
Correct Answer:
Verified
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