If the United States is in a recessionary gap, the appropriate policy is to _____ the money supply to _____ interest rates.

Question

Quizplus · Accepted Answer

If the United States is in a recessionary gap, the appropriate policy is expansionary monetary policy, which involves increasing the money supply to decrease interest rates. This is because lower interest rates encourage borrowing and investment, which can stimulate economic growth and help move the economy out of the recessionary gap.

If the United States Is in a Recessionary Gap, the Appropriate