Business, 23.11.2019 04:31 zalliagessnerp5fuj9

Suppose that the stock market experiences a significant and prolonged decline. in response, the federal reserve lowers the federal funds interest rate. not long afterward the interest rate decline, there is a large positive shock to investment spending. as a result of both the monetary policy action and the investment spending shock:
o actual output may go above potential outputo inflation will increase more than the fomc had intendedo the unemployment rate will be below the natural rateo all of the above

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Suppose that the stock market experiences a significant and prolonged decline. in response, the fede...

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