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When unemployment has increased
layoffs at a large defense contracting company
layoffs at a large defense contracting company
Aggregate demand curve to the right. Stay Golden
buy securities on the open market.
the goal is to get the consumer to increase their spending
When unemployment has increased
When unemployment has increased
layoffs at a large defense contracting company
layoffs at a large defense contracting company
Aggregate demand curve to the right. Stay Golden
b. investment spending falls
The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply. an increase in the money supply
buy securities on the open market.
Increase government spending in order to stimulate the economy
the federal reserve would try to lower nominal interest rate (monetary policy), not part of govt. The federal govt. would stimulate spending, either by lowering taxes or pumping money into the economy and spending more.
What is the most likely explanation for the results in the graph?