Question

"high unemployment leads to worry over economic growth""fed chairman: expect a rate decrease soon""sales of treasury bonds decreasing"what monetary policy strategy of the federal reserve do these headlines reflect?

A: making taxes more progressive in order to increase government revenues
B expanding government spending to give more money to consumers
C: educating people about good habits for managing their money
D: encouraging business growth by putting more money into circulation.
APEX need answer A$AP MOB

Answer 1

Encouraging business growth by putting more money into circulation

Answer 2

The correct answer is D), encouraging business growth by putting more money into circulation.

The decision of the Federal Reserve to lower the interest rate is because they are looking to increase the growth of the economy, and at the same time, to lower the unemployment rate. When the Federal Reserve lowers the interest rate, they are using an expansionary measure because they want to stimulate the economy.