Suppose the economy is experiencing a recession. If the Federal Reserve enacts expansionary monetary policy, interest rates will likely Multiple Choice fall causing short-run real GDP to increase....

Suppose the economy is experiencing a recession. If the Federal Reserve enacts expansionary monetary policy, interest rates will likely

Multiple Choice

• 
  
  
  

  
  

  fall causing short-run real GDP to increase.

  
  
  
  


• 
  
  
  

  
  

  rise causing short-run real GDP to decrease.

  
  
  
  


• 
  
  
  

  
  

  fall causing short-run real GDP to decrease.

  
  
  
  


• 
  
  
  

  
  

  rise causing short-run real GDP to increase.