If unemployment is the major problem in the economy, which of the following would be an appropriate monetary policy response?

Question

Quizplus · Accepted Answer

Decreasing the discount rate would encourage banks to borrow more money from the central bank, making it easier for them to lend to customers, which would likely lead to increased investments in the economy and potentially decrease unemployment. Decreasing taxes or selling government bonds may also have some impact on the economy, but they are not directly linked to addressing unemployment as monetary policy tools.

If Unemployment Is the Major Problem in the Economy, Which