Cooper recently saw a report online that the Fed will try to help get the U.S. economy back on track. If the Fed takes action, Cooper would likely see
A) lower interest rates.
B) an increase in the size of the government's budget deficit.
C) lower government spending.
D) an increase in the minimum wage.

Question

Quizplus · Accepted Answer

The Fed is concerned with monetary policy. The Fed achieves its goals by bringing about changes in the supply of money and interest rates. During recessions the Fed normally pursues policies to reduce interest rates in order to stimulate additional spending. The Fed is not directly involved in changing the level of government spending or taxes (and thus does not directly affect the size of the deficit). It is Congress, not the Fed, which would enact legislation needed to increase in the minimum wage.

Cooper Recently Saw a Report Online That the Fed Will