The Federal Reserve through monetary policy can help expand the economy by
A) lowering income taxes on individuals.
B) reducing tariffs such that foreign exports can increase.
C) supporting a moderate growth of the money supply.
D) increasing government spending on the national infrastructure.

Question

Quizplus · Accepted Answer

The Federal Reserve can expand the economy by supporting a moderate growth of the money supply, as this can lower interest rates, encourage borrowing, and stimulate economic activity. Choices A, B, and D are fiscal policy measures, not monetary policy actions.

The Federal Reserve Through Monetary Policy Can Help Expand the Economy