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2 votes
Q:

What type of policy does the Fed use to counteract a contraction?

A:
1. О fiscal policy
2. policy lags
3. expansionary monetary policy
4. contractionary monetary policy

User Blitzqwe
by
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1 Answer

2 votes

Answer:

3. expansionary monetary policy

Step-by-step explanation:

To help accomplish this during recessions, the Fed employs various monetary policy tools in order to suppress unemployment rates and re-inflate prices. These tools include open market asset purchases, reserve regulation, discount lending, and forward guidance to manage market expectations.

User Fazila
by
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