Q: What type of policy does the Fed use to counteract a contraction? A: 1. О fiscal policy 2. policy lags 3. expansionary monetary policy 4. contractionary monetary policy

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Fazila · Answer 1 · 2022-01-07T02:19:04+0000

Answer:

3. expansionary monetary policy

Step-by-step explanation:

To help accomplish this during recessions, the Fed employs various monetary policy tools in order to suppress unemployment rates and re-inflate prices. These tools include open market asset purchases, reserve regulation, discount lending, and forward guidance to manage market expectations.

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Q: What type of policy does the Fed use to counteract a contraction? A: 1. О fiscal policy 2. policy lags 3. expansionary monetary policy 4. contractionary monetary policy

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