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If the Federal Reserve decreases the rate on required and excess reserves, what would be the ideal outcome?

A.) real GDP decreases and deflation occurs

B.) real GDP rises and the unemployment rate increases

C.) real GDP rises and the unemployment rate decreases

D.) real GDP decreases and the unemployment rate decreases

Respuesta :

Answer:

C.) real GDP rises and the unemployment rate decreases

Explanation:

In the case when the federal reserve reduced the rate on the excess reserves so the result should be real GDP should be increased and there is the decrease in the unemployment rate.

The following statement should not be considered at the time when the federal reserve reduced the rate on the excess reserves:

  • Decrease in real GDP and deflation arise.
  • Real GDP increased and increase in the unemployment rate.
  • Real GDP decreased and the unemployment rate reduced.

Therefore we can conclude that the correct option is c.

Learn more: brainly.com/question/19682087