Multiple Choice
If the economy were in a recession,which of the following policies would a person who favors an active approach to policy be most likely to support?
A) The economy should be left to cure itself without government intervention.
B) The Fed should sell U.S.government securities in its open-market operations.
C) The Fed should raise the discount rate.
D) Government purchases should increase.
E) The Fed should raise the required reserve ratio.
Correct Answer:

Verified
Correct Answer:
Verified
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