If unemployment is the major problem in the economy, which of the following would be an appropriate monetary policy response?
A)decrease taxes
B)decrease the discount rate
C)sell government bonds
D)all of the above

Question

If unemployment is the major problem in the economy, which of the following would be an appropriate monetary policy response?
A)​decrease taxes
B)​decrease the discount rate
C)​sell government bonds
D)​all of the above

Quizplus · Accepted Answer

Decreasing the discount rate would encourage borrowing and investment, which can lead to increased production and ultimately job creation. Decreasing taxes and selling government bonds may have some impact on the economy, but it is less direct and may not specifically target unemployment.

If Unemployment Is the Major Problem in the Economy, Which