During 2009, the Federal Reserve was easing monetary policy in an attempt to boost the economy. That same year, Congress passed the American Recovery and Reinvestment Act that cut taxes and expanded existing tax credits for working families and businesses. As a result of this policy. A both the interest rate and GDP should increase

ENGR.ECONOMIC ANALYSIS
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During 2009, the Federal Reserve was easing monetary policy in an attempt to
boost the economy. That same year, Congress passed the American Recovery
and Reinvestment Act that cut taxes and expanded existing tax credits for
working families and businesses.
As a result of this policy.
OA both the interest rate and GOP should increase
OB. the interest rate should increase and the effect on GDP should be
ambiguous
C. GDP should increase and the interest rate should decrease.
D. GDP should increase and the effect on the interest rate should be
Transcribed Image Text:← During 2009, the Federal Reserve was easing monetary policy in an attempt to boost the economy. That same year, Congress passed the American Recovery and Reinvestment Act that cut taxes and expanded existing tax credits for working families and businesses. As a result of this policy. OA both the interest rate and GOP should increase OB. the interest rate should increase and the effect on GDP should be ambiguous C. GDP should increase and the interest rate should decrease. D. GDP should increase and the effect on the interest rate should be
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