Social Science

Thursday, July 22, 2010

Which of the following monetary policies reduces aggregate demand and output?

Which of the following monetary policies reduces aggregate demand and output?



(a)A cut in the Fed funds rate.



(b)An open market sale of government securities.



(c)A cut in the discount rate.



(d)A cut in the reserve requirement.
B. Its contractionary monetary policy. The fed takes cash out of the economy and replaces it with securities.

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Social Science

social Science