Predict whether unemployment will increase or decrease as a result of each of the following monetary policies. If it is unanticipated? What if it is anticipated?
a. A reduction in the discount rate from 6 percent to 5.5 percent
b. An open market sale by the Federal Reserve Bank
c. An increase in the required reserve ratio from 10 percent to 12 percent
This question was answered on: Jul 11, 2017
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