In times of economic downturn the Fed will engage in ____ monetary policy by ____ bonds.

Name: In times of economic downturn the Fed will engage in ____ monetary policy by ____ bonds.
Brand: Quizplus
Rating: 4.8 (62 reviews)

Question

Quizplus · Accepted Answer

In times of economic downturn, the Fed will engage in expansionary monetary policy to stimulate the economy. This is accomplished by buying government bonds, which increases the money supply and reduces interest rates. Therefore, the correct choice is D.

In Times of Economic Downturn the Fed Will Engage in ____