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NISA [10]
2 years ago
8

PLEASE HELP THERE ARE TWO SCENARIOS

Business
1 answer:
rosijanka [135]2 years ago
6 0

It is correct to state that the Fed will address the scenario with expansionary policy.

<h3>What is an expansionary policy?</h3>

An expansionary policy is one that seeks to increase the amount of money  so that aggregate demand can be stimulated.

<h3>What is a specific monetary action the Fed might use in this scenario? Identify the tool and how the Fed would use it. Explain how this would address the scenario.</h3>

When money is injected into the economy using tools such as

  • Lower interest rates
  • Lower Bank Reserves etc., demand is stimulated.

<h3>What is a specific fiscal action that Congress might use in this scenario?</h3>

Examples of fiscal polices that the congress might enlist for deployment in this scenarios are:

  • Government spending; and
  • Tax regulation.

To increase aggregate demand, Government will inject more money in to the economy by buying back bonds or embarking on projects at the state and local levels.

Reduction of taxes will also help put more money in the hands of people, thus increasing aggregate demand.

Learn more about expansionary policies:
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Hope this helps! :)

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Peanut butter is a food paste or spread crafted from ground, dry-roasted peanuts. It typically consists of extra components that alter the flavor or texture, which include salt, sweeteners, or emulsifiers. Peanut butter is fed on in many countries. The USA is the main exporter of peanut butter and one of the most important clients of peanut butter annually in step per capita. January 24 is National Peanut Butter Day inside the u.S.. Peanut butter is a nutrient-rich food containing high levels of protein, numerous vitamins, and nutritional minerals. Its miles typically served as diffusion on bread, toast, or crackers, and used to make sandwiches (extensively the peanut butter and jelly sandwich). It's also used in some breakfast dishes and desserts, inclusive of granola, smoothies, crepes, cookies, brownies, or croissants. It's far much like other nut butter such as cashew butter and almond butter.

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