Statements relate to the AD

Statements relate to the AD–AS model

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Reference no: EM13985979

Describe how the following statements relate to the AD–AS model:

a. The Fed has bought more than $2 trillion of Treasury and mortgage bonds to stimulate the economy.

b. The above actions by the Fed may cause inflation to rise to levels that most would consider unacceptable.

c. The Fed expected a weaker dollar to help increase exports.

d. Businesses already have ample access to cheap credit and are reluctant to borrow, hire, and invest for other reasons.

Reference no: EM13985979

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