During a severe recession,appropriate economic policy might include
A)An open market purchase by the Fed,a decrease in the discount rate,or a decrease in government regulation.
B)An open market sale by the Fed,a decrease in the discount rate,or an increase in the budget deficit.
C)A decrease in government spending,a decrease in the discount rate,or a decrease in government regulation.

Question

Quizplus · Accepted Answer

During a recession, expansionary monetary policy is appropriate, which includes an open market purchase by the Fed to increase money supply and lower interest rates, and a decrease in the discount rate to encourage borrowing. Reducing government regulation can also stimulate economic activity.

During a Severe Recession,appropriate Economic Policy Might Include