151k views
5 votes
use this image to answer the following question, when the economy is operating at point C, the U.S congress is most likely to follow

User Edie
by
3.9k points

2 Answers

2 votes

Answer:

expansionary fiscal policy

Step-by-step explanation:

I took the test and its right

User Ramhiser
by
3.9k points
4 votes

The U.S congress is most likely to follow expansionary monetary policy.

Step-by-step explanation:

Expansionary monetary policy is when a central bank uses its tools to stimulate the economy. That increases the money supply, lowers interest rates, and increases aggregate demand. It boosts growth as measured by gross domestic product. It is the opposite of contractionary monetary policy.

The effects of the expansionary monetary policy are that it should cause higher economic growth and lower unemployment. It will also cause a higher rate of inflation. To some extent, the expansionary monetary policy of 2008, helped economic recovery.

User Vladimir Alexiev
by
3.4k points