Question 14 of 25
The Federal Reserve would most likely adopt an expansionary monetary
policy in which
economic situation?
A. The country has a low unemployment rate and steady economic
growth.
B. The country has a low inflation rate and strong economic growth.
C. The country has a high inflation rate and rapid economic growth.
D. The country has a high unemployment rate and slow economic
growth.
SUBMIT



Answer :

Final answer:

Expansionary Monetary Policy is adopted in response to high unemployment and slow economic growth to stimulate the economy by increasing the money supply and lowering interest rates.


Explanation:

Expansionary Monetary Policy occurs when the Federal Reserve aims to stimulate the economy by increasing the money supply and lowering interest rates. This policy is typically implemented in response to high unemployment rates and slow economic growth, as it seeks to boost economic activity.


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