contestada

The Federal Reserve would most likely adopt an expansionary monetary policy in which economic situation?

A. most Americans have jobs, but inflation rate has been steadily rising.
B. many Americans have lost jobs, and economic growth has slowed.
C. businesses are borrowing a lot of money, and the economy is rapidly growing.
D. economic growth has been consistent for several years with little unemployment.

Respuesta :

Samawati

Answer:

B. many Americans have lost jobs, and economic growth has slowed.

Explanation:

Expansionary monetary policies are the Fed's actions to stimulate economic growth and create job opportunities. The policies target to increase liquidity in the market. Expansionary monetary policies result in increased demand for goods and services, thereby increasing production activities.

Some of the expansionary monetary policies available to the Fed include lowering the reserve requirements, reducing the discount rate, and open market purchases. These actions increase the money supply in the economy.

chilljain33

B- Federal reserve would adopt an expansionary monetary policy in cases where people have lost jobs and economic growth has slowed. This policy has been widely recognized as the most effective monetary policies.

This policy has helped the federal reserve overcome the phases like recession and other factors leading to downfall in the economy with perfect solutions to stabilize the conditions again.

  • The federal reserve uses this policy as it is an efficient tool in increasing the liquidity of the assets in the market and this increases the job opportunities in the market.

  • This steps lead to an economic growth. With various initiatives taken, there is an increase in production activities and which in turn leads to an overall increase in the demand for goods and services as well.

  • All the activities in this policy help the nation get back on track and the condition of the nation is stabilized again which increases the supply of money in the economy.

Hence, option B is correct that policy is adopted when many Americans have lost jobs and the economy growth has slowed.

To know more about the Federal reserve, click on link given below.

https://brainly.com/question/7486364

Otras preguntas