If the Federal Reserve decreases the rate on required and excess reserves, what would be the ideal outcome? A.) real GDP decreases and deflation occurs B.) real GDP rises and the unemployment rate increases

If the Federal Reserve decreases the rate on required and excess reserves, what would be the ideal outcome?

A.) real GDP decreases and deflation occurs

B.) real GDP rises and the unemployment rate increases

C.) real GDP rises and the unemployment rate decreases

D.) real GDP decreases and the unemployment rate decreases

1 Answer

If the Federal Reserve decreases the rate on required and excess reserves, what would be the ideal outcome? A.) real GDP decreases and deflation occurs B.) real GDP rises and th…

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