Multiple Choice
To eliminate a recessionary gap,the Fed can:
A) increase the money supply as it will increase the interest rate and investment.
B) increase the money supply as it will decrease the interest rate and increase investment.
C) decrease the money supply as it will increase the interest rate and investment.
D) decrease the money supply as it will decrease the interest rate and investment.
E) decrease the money supply as it will increase the interest rate and decrease investment.
Correct Answer:
Verified
Correct Answer:
Verified
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