Question

Congress has decided to extend unemployment compensation for those without jobs to 20 weeks because our unemployment rate is 10.2%. Food banks around the nation are reporting that a record number of families are requesting assistance
What monetary policy action should be taken?


Decrease government spending
Decrease government spending

Sell government securities (bonds)
Sell government securities (bonds)

Lower the discount rate
Lower the discount rate

Lower taxes
Lower taxes

Answer 1

Answer:

contractionary monetary policy