Financial crisis-series of unfortunate international events

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Suppose the U.S. economy finds itself in a recession after a recent financial crisis and series of unfortunate international events. If the Federal Reserve wants to stabilize the economy, what should it do?

A: Decrease the money supply to increase interest rates and shift Aggregate Demand to the left.

B: Decrease the money supply to increase interest rates and shift Aggregate Demand to the right

C: Increase the money supply to increase interest rates and shift Aggregate Demand to the right.

D: Decrease taxes and decrease government spending.

Reference no: EM131161229

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