The federal reserve comes to the conclusion that more money must be pumped into the economy in an effort to stimulate economic growth. which of the following actions could the fed take that would result in increasing the money supply? a) buy securities (bonds) b) sell securities (bonds) c) raise the reserve requirement d) raise the discount rate

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.