If the Fed decided to reverse its policy actions implemented during the heart of the recession,the Fed would be acting to try to prevent

Question

Quizplus · Accepted Answer

Reversing policy actions implemented during the heart of the recession would stimulate economic growth and potentially lead to an increase in inflation, as increased aggregate demand could lead to higher prices. Therefore, the Fed would be acting to try to prevent an increase in inflation.

If the Fed Decided to Reverse Its Policy Actions Implemented