contestada

According to the video, did the Federal Reserve pursue

an expansionary or a contractionary monetary policy?

Give at least two examples of actions that support your

answer.

Respuesta :

Answer:

The Federal Reserve took an expansionary approach during the crisis. This was done by expanding the money supply and boosting liquidity. This can be seen in the Fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. The Fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.

Explanation:

Parrain

As shown in the video, the Fed pursued an expansionary monetary policy by:

  • Lending to banks
  • Reducing the reserve rate

During the crisis of the Great Repression of 2008, the Fed engaged in expansionary monetary policy as they tried to pump money into the economy. Some ways they did this include:

  • Lending more to banks - they increased the amount of money they lent to banks to encourage them to give out more loans to people and businesses

  • Reducing reserve rate - they also reduced the percentage that banks were to keep with the Fed to boost reserves for loans.

In conclusion, both these things were done to encourage more loans and therefore more money and therefore are strategies of expansionary monetary policy.

Find out more at https://brainly.com/question/2343055.

Otras preguntas