if the fomc determines that employment or inflation are too low, what kind of policy might it use…

if the fomc determines that employment or inflation are too low, what kind of policy might it use? contractionary expansionary

if the fomc determines that employment or inflation are too low, what kind of policy might it use? contractionary expansionary

Answer

Brief Explanations:

When employment or inflation is too low, the Federal Open - Market Committee (FOMC) aims to stimulate the economy. Expansionary policies increase the money supply and boost economic activity, which helps raise employment and inflation levels. Contractionary policies do the opposite, reducing the money supply and economic activity.

Answer:

Expansionary