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

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

User Sajib Acharya
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2 Answers

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contractionary; increasing
User Narayana
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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
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