178k views
2 votes
"Economy Contracting, Experts Report"

"Fed Announces Decreases in Interest Rates"
"Banks Request Lowered Reserve Ratio"

What monetary policy strategy of the Federal Reserve do the headlines reflect?

A. Increasing the money supply to spur economic growth
B. Lowering taxes to stimulate the economy
C. Restricting overnight loans in order to regulate banks
D. Expanding government spending to give more money to consumers

IT IS A, on apex.

User Nicholi
by
6.6k points

2 Answers

6 votes
Answer is A.
Increasing the money supply to spur
User Mark Lavin
by
5.7k points
2 votes

Answer:

The answer is A.

Step-by-step explanation:

Lower financing costs can stimulate investments and borrowing. That´s why the Federal Reserve lowers interest rates. Sustainable economic growth and price stability are two of the most important goals of the Federal Reserve.

User Adamency
by
5.8k points