GDP. To move U.S. GDP back to potential GDP, the Fed should
A. lower the federal funds rate.
B. raise the federal funds rate.
C. increase the governmentʹs budget deficit.
D. decrease the governmentʹs budget deficit.
Answer:B
GDP. To move U.S. GDP back to potential GDP, the Fed should
A. lower the federal funds rate. B. raise the federal funds rate. C. increase the governmentʹs budget deficit. D. decrease the governmentʹs budget deficit.