Question

5.) Read the question to yourself and select the best answer. Which action would the Federal Reserve Board most likely take to combat high unemployment rates?

A. decrease welfare and health benefits
B. decrease government spending
C. increase sales and income taxes
D. Increase money supply in the economy

Answer 1

C. Increase the money supply in the economy.

Step-by-step explanation:

The FRB works to reduce unemployment by boosting economic growth. They use various tool to suppress unemployment rates. The primary method used is expansionary monetary policy.