To Eliminate a Recessionary Gap the Fed Typically Uses __________

question 48

Multiple Choice

To eliminate a recessionary gap the Fed typically uses __________ monetary policy,and to eliminate an inflationary gap the Fed typically uses __________ monetary policy.

• A) expansionary; expansionary
• B) expansionary; contractionary
• C) contractionary; contractionary
• D) contractionary; expansionary

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Definitions:

2006

A year in the Gregorian calendar, notable for various global events in politics, science, and culture.

2008

A year marked globally by significant events including the financial crisis, which was among the worst economic downturns since the Great Depression, and the election of Barack Obama as the 44th president of the United States.

2010

marks a year known for various global and local events, including technological advancements, political happenings, and cultural milestones.

Enron

A former American energy company based in Houston, Texas, infamous for one of the largest accounting frauds and its collapse in 2001.