Business, 11.12.2019 20:31 prelogical

Suppose that you are the chairperson of the fed. imagine that your goal is to stabilize output (ie to keep short run output as close to zero as possible). explain what policy decisions you would implement (and what curves would shift) in order to achieve the aforementioned goal under the following assumption: a booming economy in europe leads to an unexpected increase in the demand by european consumers for u. s.goods. a. the is curve shifts to the right due to the increase in exports to europe. you would have to lower interest rates to bring back the economy to potential output. b. the is curve shifts to the right due to the increase in exports to europe. you would have to lower interest rates to bring back the economy to potential output. c. the is curve shifts to the right due to the increase in exports to europe. you would have to raise interest rates to bring back the economy to potential output. d. the is curve shifts to the left due to the increase in exports to europe. you would have to raise interest rates to bring back the economy to potential output

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Suppose that you are the chairperson of the fed. imagine that your goal is to stabilize output (ie t...

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