The process of accommodation by the Fed typically means it is following a(n)________ money policy.
A) tight
B) easy
C) selective
D) fiscal
E) open

Question

Quizplus · Accepted Answer

Accommodation by the Fed generally involves easing monetary policy. This may involve increasing the money supply, lowering interest rates, or buying assets such as government bonds to inject liquidity into the system. All of these measures are aimed at stimulating borrowing and spending, which in turn can boost economic activity and help to counteract recessionary conditions.

The Process of Accommodation by the Fed Typically Means It