Question: When inflation is below target, real GDP is less than potential GDP , and the unemployment rate exceeds the natural unemployment rate, what does the

When inflation is below target, real GDP is less than potential GDP, and the unemployment rate exceeds the natural unemployment rate, what does the Fed do?
A. The Fed lowers the federal funds rate target and starts QE.
B. The Fed lowers the federal funds rate target and starts QT.
C. The Fed raises the federal funds rate target and starts QT.
D. The Fed raises the federal funds rate target and starts QE.
When inflation is below target, real GDP is less

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