Suppose an increase in interest rates causes rising unemployment and falling output. to counter this, the federal reserve would

1 answer:

8 0

Most likely A) increase money supply, because they are capitalism economy. The federal reserve is in charge of all the country's Capitol, or: resources and money.
(but for a country that is more sympathetic to the people it would be B) because it would increase social security nets like welfare)

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Well it is different for everyone... but i will give you mine...

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Good evening, Benedettoanna24!

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I hope this answer has satisfied your needs, and if you have anymore questions, feel free to ask. Have a good night!

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