Which of the following is a monetary policy action to eliminate a recession?
A)Increased investment in job training programs.
B)The sale of securities in the open market by the Fed.
C)A decrease in the marginal tax rate.
D)A decrease in the discount rate.

Question

Quizplus · Accepted Answer

A decrease in the discount rate would encourage borrowing and spending, leading to an increase in economic activity and potentially eliminating a recession. Options A, B, and C are not monetary policy actions; they involve fiscal policy or non-monetary actions.

Which of the Following Is a Monetary Policy Action to Eliminate