If the central bank wants to reduce the effects of a recession,it would adopt a(n)________.
A) expansionary fiscal policy
B) contractionary monetary policy
C) contractionary fiscal policy
D) expansionary monetary policy

Question

Quizplus · Accepted Answer

To reduce the effects of a recession, the central bank would adopt an expansionary monetary policy. This refers to increasing the money supply and lowering interest rates to encourage borrowing and spending, ultimately leading to an increase in economic activity and potentially reducing the severity of the recession.

If the Central Bank Wants to Reduce the Effects of a Recession,it