The Fedʹs rate cuts will ________ bank reserves and ________.
A. increase; increase the money supply and real GDP
B. decrease; decrease the money supply and real GDP
C. increase; increase the exchange rate and real GDP
D. decrease bank reserves; decrease the exchange rate and real GDP
Answer:A
The Fedʹs rate cuts will ________ bank reserves and ________.
A. increase; increase the money supply and real GDP B. decrease; decrease the money supply and real GDP C. increase; increase the exchange rate and real GDP D. decrease bank reserves; decrease the exchange rate and real GDP