In response to the sharp decline in stock prices in October 1987,the Federal Reserve
A)increased the money supply and increased interest rates.
B)increased the money supply and decreased interest rates.
C)decreased the money supply and increased interest rates.
D)decreased the money supply and decreased interest rates.

Question

Quizplus · Accepted Answer

The Federal Reserve increased the money supply and decreased interest rates to stabilize the financial markets and restore confidence after the stock market crash in October 1987.

In Response to the Sharp Decline in Stock Prices in October