Quizzol

QUESTION:

Suppose a pandemic causes a reduction in consumer spending. If the Federal Reserve chooses to engage in activist stabilization policy, it should _______.

a. increase government spending and decrease taxes

b. decrease the money supply and increase interest rates

c. increase the money supply and decrease interest rates

d. decrease government spending and increase taxes

ANSWER:

c. increase the money supply and decrease interest rates

Posted by Cleveland on September 17, 2024