What would the Fed do if the economy is in a fast rate of expansion?

A. Decrease interest rates
B. Decrease interest rates
C. Increase the money supply
D. Reduce the money supply

Question

What would the Fed do if the economy is in a fast rate of expansion?

	A.	Decrease interest rates
	B.	Decrease interest rates
	C.	Increase the money supply
	D.	Reduce the money supply

anonymous · Answer

It cannot be decreasing the interest rates as this would result in more consumption and expansion neither increase the money supply...it can be reduce the money supply...

and if im not mistaking a and option is the same by mistake one option should be increase the interest rate which is the correct answer if not then D is the answer