According to the political business cycle theory,if the Fed wanted to see a President re-elected,prior to the election it might
A)buy bonds to raise interest rates.
B)buy bonds to reduce interest rates.
C)sell bonds to raise interest rates.
D)sell bonds to reduce interest rates.

Question

Quizplus · Accepted Answer

According to the political business cycle theory, the Fed might buy bonds to reduce interest rates, which can stimulate the economy and improve the incumbent President's chances of re-election by creating a more favorable economic environment.

According to the Political Business Cycle Theory,if the Fed Wanted