If the Fed wants to stimulate the economy, ________. A) it ...

[olgavictoria]

If the Fed wants to stimulate the economy, ________.
 
  A) it reduces money supply B) it lowers spending
  C) it increases tax rates D) it lowers short-run interest rates

Question 2

Something that affects the amount of money in existence will
 
  A) affect all markets.
  B) have no particular effect.
  C) have an effect only if the change in money is large.
  D) not affect the economy as a whole but may affect certain key markets such as the market for loans.

[briseldagonzales]

Answer to Question 1

D

Answer to Question 2

A