Asked by Brittney Freeman on Jun 07, 2024
Verified
The conventional monetary policy to fight recessions would be to
A) increase the rate of monetary growth.
B) decrease the rate of monetary growth.
C) run a government surplus.
D) run a government deficit,increase government spending.
Monetary Policy
The process by which a central bank, like the Federal Reserve, controls the supply of money in an economy, often targeting inflation or employment levels.
Recessions
Periods of economic decline when GDP falls for two consecutive quarters, leading to a decrease in consumer spending and investment.
Government Surplus
A situation where the government's income, mainly from taxes, exceeds its expenditures within a specific timeframe, indicating fiscal health.
- Gain an understanding of the role that governmental fiscal actions and central banking policies play in affecting recessionary periods and inflation levels.
Verified Answer
Learning Objectives
- Gain an understanding of the role that governmental fiscal actions and central banking policies play in affecting recessionary periods and inflation levels.
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