Suppose the Fed is worried because business inventories are rising. Due to this concern, the FOMC...

 

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Suppose the Fed is worried because business inventories are rising. Due to this concern, the FOMC will discuss the direction of monetary policy at its next meeting. In this circumstance, one action the Fed could take would be to would make banks As a result, the money supply would As a result, Investment would employment is restored. This action is referred to as of the Fed's policy tools, changing the discount rate is A. the most important and most frequently used tool. B. the weakest and least frequently used tool. C. the weakest tool. D. the strongest and least frequently used tool. cautions about making loans; and thus, banks would make and the nominal interest rate would Aggregate Demand would shift the discount rate. The Fed's expectation is that this loans. monetary policy. and Real GDP would until full Suppose the Fed is worried because business inventories are rising. Due to this concern, the FOMC will discuss the direction of monetary policy at its next meeting. In this circumstance, one action the Fed could take would be to would make banks As a result, the money supply would As a result, Investment would employment is restored. This action is referred to as of the Fed's policy tools, changing the discount rate is A. the most important and most frequently used tool. B. the weakest and least frequently used tool. C. the weakest tool. D. the strongest and least frequently used tool. cautions about making loans; and thus, banks would make and the nominal interest rate would Aggregate Demand would shift the discount rate. The Fed's expectation is that this loans. monetary policy. and Real GDP would until full

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The detailed answer for the above question is provided below The answer is C the weakest tool Heres ... View the full answer