Solved

Although the Federal Reserve May Increase the Monetary Base,the Larger

Question 159

Multiple Choice

Although the Federal Reserve may increase the monetary base,the larger monetary aggregates (M1 and M2) and thus aggregate demand won't increase very much in response if:


A) the interest rate is too high.
B) the tax rate is too high.
C) banks are slow to lend.
D) the economy is in recession.

Correct Answer:

verifed

Verified

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

Related Questions