If the output gap is positive, then relative to the neutral interest rate, the Federal Reserve will _____ the real interest rate to drive _____ consumption and investment. Group of answer choices raise; down raise; up lower; down lower; up
If the output gap is positive, then relative to the neutral interest rate, the Federal Reserve will _____ the real interest rate to drive _____ consumption and investment. Group of answer choices raise; down raise; up lower; down lower; up
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 5SQP
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Question
If the output gap is positive, then relative to the neutral interest rate, the Federal Reserve will _____ the real interest rate to drive _____ consumption and investment.
Group of answer choices
raise; down
raise; up
lower; down
lower; up
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