In one of his weekly broadcasts,the Federal Reserve Chairman remarked that inflation had begun to tick upward.However,unemployment in the U.S was still quite high and economic growth had slowed.With short-term interest rates close to 0 zero),the Chair did not visualize that ____________ policy would be able to do anything for the high unemployment problem.He felt that _______ policy would be more useful for bolstering employment,but that would require local and state governments and the federal government to provide tax breaks for corporations?
A)federal;state
B)fiscal;monetary
C)monetary;fiscal
D)fiscal;federal

Question

Quizplus · Accepted Answer

The Chair's statement indicates that monetary policy (such as adjusting interest rates) would not be effective in addressing high unemployment, but fiscal policy (such as tax breaks for corporations) would be more useful. This suggests a need for government intervention at both the state and federal levels, making B and D incorrect. Additionally, while the Chair mentions inflation ticking upward, the question does not suggest a need for a federal (A) response specifically related to inflation. Therefore, C is the best choice.

In One of His Weekly Broadcasts,the Federal Reserve Chairman Remarked