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Question 6 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 unemployment rate and slow economic growth.
D. The country has a high inflation rate and rapid economic growth.

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Answer :

GinnyAnswer

Final answer:

The Federal Reserve would adopt an expansionary monetary policy in a high unemployment, slow economic growth scenario to stimulate the economy.


Explanation:

An expansionary monetary policy is most likely to be adopted by the Federal Reserve in a situation where the country has a high unemployment rate and slow economic growth. This policy involves increasing the money supply and lowering interest rates to stimulate economic activity and decrease unemployment.


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