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NARA [144]
3 years ago
12

If the fed believes the economy is about to fall into​ recession, it should

Business
1 answer:
Otrada [13]3 years ago
5 0
<span>If the Fed believes the economy is about to fall into​ recession, it should use an expansionary monetary policy to lower the interest rate and shift AD to the right. When using an expansionary monetary policy a central bank will use its tools to stimulate the economy. They increase the supply of money, lower interest rates and increase aggregate demand. 

</span>
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