Economics Mcqs
Q Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ?
  • A A. Increase government spending and decrease taxes
  • B B. Decrease the money supply
  • C C. Decrease government spending and increase taxes
  • D D. Decrease interest rates
Leave a Comment