Question

Which type of monetary policies would the federal reserve most likely use when the economy is struggling?

A- expansionary policies
B-contractionary policies
C-discretionary spending policies
D-regressive tax policies

Answer 1

Letter A. Expansionist Policies.

Step-by-step explanation:

In a difficult economic situation, the Federal Reserve can use expansionary monetary policy to stimulate economic activity. For example, lowering the interest rate stimulates investment and consumption, thus stimulating production and job creation.