The Federal Reserve can influence the economy by shifting: A

Economics Apr 25, 2021

The Federal Reserve can influence the economy by shifting: A. DAD curve B. SRAS curve C. Solow Growth Curve D. All of the answers are correct

Expert Solution

Answer

A .

Explanation

Federal Reserve can influence the economy from demand side by shifting the demand curve by policies formed by the federal reserve of the united states. Federal Reserve can affect the economy by influencing the money supply in the economy and changing the money supply affects the aggregate demand curve (AD) of the economy.

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