If the Fed uses a passive monetary policy during weak economic conditions,

Question

Quizplus · Accepted Answer

Using a passive monetary policy during weak economic conditions means that the Fed does not actively intervene by increasing or decreasing the money supply. Instead, they allow the economy to adjust and fix itself through natural market forces. This approach is often preferred because it reduces the risk of creating imbalances or inflationary pressures in the economy.

If the Fed Uses a Passive Monetary Policy During Weak