Description
If the economy is experiencing a recession, what would be more effective for stabilizing our economy, the use of monetary and/or fiscal policy? Please make sure to explain your analysis.
Explanation & Answer
If the economy is experiencing a recession, the federal reserve bank should implement " quantitative easing " policy which means that the federal reserve prints more money and makes it available to banks. In turn, banks buy government bonds and give loans to businesses and people which spurs the economy. As a result, our economy is stabilized
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