208k views
4 votes
If the economy is in a recessionary gap, the Federal Reserve should conduct _____ monetary policy by _____ the money supply.

2 Answers

1 vote
contractionary; increasing
User Narayana
by
9.2k points
5 votes
For the answer to the question above, If the economy is in a recessionary gap, the Federal Reserve should conduct monetary policy by increasing the money supply.

I hope my answer helped you. feel free to ask more questions have a nice day!
User Matt Mower
by
8.4k points