These rate cuts are designed to
A. decrease the real long-term interest rate and increase real GDP.
B. increase the exchange rate and decrease government spending.
C. increase bank reserves and the exchange rate.
D. decrease the exchange rate and investment.
Answer:A
These rate cuts are designed to
A. decrease the real long-term interest rate and increase real GDP. B. increase the exchange rate and decrease government spending. C. increase bank reserves and the exchange rate. D. decrease the exchange rate and investment.