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If the economy were experiencing high rates of unemployment and low inflation, the appropriate monetary policy strategy would most likely be:

a. to have the Fed sell securities on the open market.

b. to have the Fed buy securities on the open market.

c. to have the Fed buy securities on the open market while at the same time raising the reserve requirement.

d. to have the Fed cut taxes.

e. None of the above is correct.

Macroeconomics, Economics

  • Category:- Macroeconomics
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