During 2001-2004, the Fed injected additional reserves into the banking system, which reduced the federal funds rate and other short-term interest rates. Other things constant, what is the most likely short-run impact of this policy? an increase in the rate of unemployment a reduction in the growth of employment an increase in aggregate demand and real GDP Oa reduction in the long-run rate of inflation

During 2001-2004, the Fed injected additional reserves into the banking system, which reduced the federal funds rate and other short-term interest rates. Other things constant, what is the most likely short-run impact of this policy? an increase in the rate of unemployment a reduction in the growth of employment an increase in aggregate demand and real GDP Oa reduction in the long-run rate of inflation

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter34: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 6PA

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