The interest rate decreases the nominal GDP increases the quantity of money demanded by the public tends to increase by the greatest amount.
An expansionary fiscal policy might most probable boom combination demand. An expansionary coverage is one that increases the money supply. This will increase the delivery of loanable price range inside the market and reduces the interest rate.
To grow the (boom of the) money supply, the Fed ought to both buy bonds, decrease the reserve requirement ratio, or decrease the cut price charge. To decrease the (increase of the) money delivery, the Fed could either sell bonds, improve the reserve requirement ratio, or raise the bargain charge.
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