Suppose the economy is in a short-run equilibrium where Y < Yf, where Y is the r

Question

Suppose the economy is in a short-run equilibrium where Y < Yf, where Y is the real GDP and Yf is the full-employment real GDP. According to the Keynesian theory, which of the following policies should be followed?
dont guess if you dont know it dont answer it... out "%" at the end of the answer to show you read this and didn't just pst the answers. thank you.



A. The Fed should follow a fixed monetary rule.

B. The Fed should sell U.S. government securities.

C. The Fed should lower both the discount rate and required reserve ratio.

D. Only A and C.

E. Only B and C.

Explanation / Answer

D. Only A and C.

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