Which of the following would most likely induce the Federal Reserve to conduct expansionary monetary policy? A significant decrease in
A)oil prices.
B)business taxes.
C)income tax rates.
D)investment spending.

Question

Quizplus · Accepted Answer

If there is a significant decrease in investment spending, it would likely lead to a decrease in overall economic activity and potentially result in a recession. In response to such a scenario, the Federal Reserve would conduct expansionary monetary policy by decreasing interest rates and increasing the money supply to stimulate borrowing and spending, which could help revive economic growth. A decrease in oil prices, business taxes, or income tax rates could also potentially lead to economic growth, but they may not necessarily warrant expansionary monetary policy by the Federal Reserve.

Which of the Following Would Most Likely Induce the Federal