Solved

Consumer Confidence in the Economy Rises, and as a Result

Question 192

Multiple Choice

Consumer confidence in the economy rises, and as a result, real GDP increases above potential GDP. To move U.S. GDP back to potential GDP, the Fed should


A) lower the federal funds rate.
B) raise the federal funds rate.
C) increase the government's budget deficit.
D) decrease the government's budget deficit.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions