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Other Fields Homework Help Economics Topic started by: Loraine on Jun 22, 2015



Title: If real GDP exceeds potential GDP, to move the economy to potential GDP the Fed
Post by: Loraine on Jun 22, 2015
If real GDP exceeds potential GDP, to move the economy to potential GDP the Fed
A) raises the federal funds rate to increase potential GDP but not real GDP.
B) lowers the federal funds rate to decrease real GDP but not potential GDP.
C) raises the federal funds rate to decrease real GDP but not potential GDP.
D) lowers the federal funds rate to increase potential GDP but not real GDP.
E) raises the federal funds rate to decrease both real GDP and potential GDP.


Title: Re: If real GDP exceeds potential GDP, to move the economy to potential GDP the Fed
Post by: Sydnie on Jul 5, 2015
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Title: Re: If real GDP exceeds potential GDP, to move the economy to potential GDP the Fed
Post by: Sydnie on Aug 31, 2015
I was confident with my answer, glad it was correct.

Oh, and thumbs-up are more than welcome :)