Business, 25.11.2019 22:31 1846252

Suppose the fed is worried because real gdp is expanding too rapidly. due to this concern, the fomc will discuss the direction of monetary policy at its next meeting. in this circumstance, one action the fed could take would be to ▼ buy sell bonds. this would ▼ increase decrease the amount of reserves in the banking system, and the fed’s expectation is that banks would make ▼ more less loans. as a result, the money supply would ▼ increase decrease , and the interest rate would ▼ rise fall . as a result, investment would ▼ decrease increase . aggregate demand would shift ▼ left right , and real gdp would ▼ decrease increase until full employment is restored. this action is referred to as ▼ expansionary contractionary monetary policy. of the fed's policy tools, open market operations is a. the weakest and least frequently used tool. b. the weakest tool. c. the most important and most frequently used tool. d. the strongest and least frequently used tool.

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Suppose the fed is worried because real gdp is expanding too rapidly. due to this concern, the fomc...

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