economics sem1\nquiz 6.4.1 - unemployment, economic indicators, inflation, and deflation\nvalue: 3\nhow…

economics sem1\nquiz 6.4.1 - unemployment, economic indicators, inflation, and deflation\nvalue: 3\nhow might deflation be stopped?\n a. fed must stimulate the economy with expansionary monetary policy.\n b. reduction in interest rates.\n c. increases in the money supply.\n d. all of the above.

economics sem1\nquiz 6.4.1 - unemployment, economic indicators, inflation, and deflation\nvalue: 3\nhow might deflation be stopped?\n a. fed must stimulate the economy with expansionary monetary policy.\n b. reduction in interest rates.\n c. increases in the money supply.\n d. all of the above.

Answer

Brief Explanations:

Expansionary monetary policy by the Fed, reduction in interest - rates, and increases in the money supply all aim to increase aggregate demand. An increase in aggregate demand helps to raise prices and thus stop deflation. Expansionary monetary policy can involve reducing interest rates and increasing the money supply.

Answer:

d. All of the above