Suppose that current output is initially above potential output. If the Fed wants to return output to potential it could

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answerhappygod
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Suppose that current output is initially above potential output. If the Fed wants to return output to potential it could

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Suppose that current output is initially abovepotential output. If the Fed wants to return output to potential itcould:
Lower the reserve requirement
Buy U.S. Treasury bonds
Raise interest rates paid on excess reserves
Lower the discount rate
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