_____ are used by the federal government to control extreme fluctuations in the business cycle that can lead to a depression.

Question

Quizplus · Accepted Answer

Monetary and fiscal policies are the tools used by the Federal Reserve and the government to influence the economy's performance. Monetary policy involves setting interest rates, which can affect borrowing, investment, and consumer spending patterns. Fiscal policy involves changing government spending levels and taxation systems to influence the economy's overall demand. These tools are used to stabilize the economy and mitigate the negative impact of fluctuations in the business cycle.

_____ Are Used by the Federal Government to Control Extreme