Question

Which of these policy recommendations by an economist is likely to involve the largest time lag? Group of answer choices reduce the size of the money supply and bank reserves cut corporate income tax rates lower interest rates lower the reserve requirement Suppose Congress is pursuing an expansionary fiscal policy. A coordinated monetary policy would require the Fed to _____. sell a large amount of bonds increase the required reserve ratio loan money to the government keep interest rates low

Answer 1

Answer:

The correct response is "interest rates to be lower".

Explanation:

• Throughout possible to lessen the output including its real economy as well as reserve requirements, sustain down rates as well as purchase a significant quantity of a commodity, the absolute biggest period will be necessary.  
• Even when an accommodative monetary system is implemented by the countries as a means towards cutting taxes through growing the economy, quantitative easing will demand lower rates so that it would raise economic performance and enhance production.