During September 2017, the Federal Reserve Bank finally issued an official statement stating that the U.S. economy was no longer weak and struggling as it was during 2008 to 2016. It said the economy was "in good shape and very strong." Question: Generally speaking, when the economy is doing well, then what will be the monetary policy of the Federal Reserve Bank?
Multiple Choice
1-The Fed will buy bonds to increase the money supply even more.
2-The Fed will sell the bonds they bought in the past and try to return to a Ms = GDP monetary policy.
3-The Fed will increase the amount of electronic money to banks in order to stimulate the economy even more.
4-The Fed will start to buy gold.
2-The Fed will sell the bonds they bought in the past and try to return to a Ms = GDP monetary policy.
Explanation: This will help Fed maintain a stable price and stable growth.
During September 2017, the Federal Reserve Bank finally issued an official statement stating that the U.S....
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