_____________________The Federal Reserve, the central bank of the United States, has been cutting the interest rate in order to stimulate the recessionary economy. Interest cuts by the Federal Reserve are supposed to: FILL IN THE BLANK A). increase investment spending and thus increase GDP via the multiplier. B.) increase cash holding by the general public thus lowering their dependence on credit. C). increase government spending on the economic infrastructure and thus increase GDP through the multiplier process. D). lower the savings rate in the economy and stop leakages. _ E) all of the above
_____________________The Federal Reserve, the central bank of the United States, has been cutting the interest rate in order to stimulate the recessionary economy. Interest cuts by the Federal Reserve are supposed to: FILL IN THE BLANK A). increase investment spending and thus increase GDP via the multiplier. B.) increase cash holding by the general public thus lowering their dependence on credit. C). increase government spending on the economic infrastructure and thus increase GDP through the multiplier process. D). lower the savings rate in the economy and stop leakages. _ E) all of the above
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 8PA
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30______________________The Federal Reserve, the central bank of the United States, has been cutting the
interest rate in order to stimulate the recessionary economy. Interest cuts by the Federal Reserve are supposed to: FILL IN THE BLANK
A). increase investment spending and thus increase
B.) increase cash holding by the general public thus lowering their dependence on credit.
C). increase government spending on the economic infrastructure and thus increase GDP through the multiplier
process.
D). lower the savings rate in the economy and stop leakages. _
E) all of the above
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