Suppose the economy is initially at long run equilibrium, when there is an unexpected increase in firm investment in the country. How does this impact the economy? (write out either "inflationary" or "recessionary" inflationary In response to this what monetary policy would the Fed employ? (write one of the following: "raise taxes", "lower taxes", "raise money supply", or "lower money supply"lower money supply What is the most likely way the Fed will accomplish this change in the monetary policy? (write one of the following: "buy securities", "sell securities", "raise discount rate", "lower discount rate", or "legislation"sell securities This action by the Fed will cause interest rates to _______. (Write out "increase" or "decrease"increase The end result of the monetary policy is a shift of which curve in which direction. (Write out one of the following: "AD right", "AD left" "AS left", "AS right"
i need help with the last question
Suppose the economy is initially at long run equilibrium, when there is an unexpected increase in firm investment in the country.
How does this impact the economy? (write out either "inflationary" or "recessionary" inflationary
In response to this what
What is the most likely way the Fed will accomplish this change in the monetary policy? (write one of the following: "buy securities", "sell securities", "raise discount rate", "lower discount rate", or "legislation"sell securities
This action by the Fed will cause interest rates to _______. (Write out "increase" or "decrease"increase
The end result of the monetary policy is a shift of which curve in which direction. (Write out one of the following: "AD right", "AD left" "AS left", "AS right"
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
