During 2001-2004, the Fed injected additional reserves into the banking system, which reduced the federal funds rate and other short-term interest rates. Other things constant, what is the most likely short-run impact of this policy? an increase in the rate of unemployment a reduction in the growth of employment an increase in aggregate demand and real GDP Oa reduction in the long-run rate of inflation
During 2001-2004, the Fed injected additional reserves into the banking system, which reduced the federal funds rate and other short-term interest rates. Other things constant, what is the most likely short-run impact of this policy? an increase in the rate of unemployment a reduction in the growth of employment an increase in aggregate demand and real GDP Oa reduction in the long-run rate of inflation
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 6PA
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