value: 2\nhow might deflation be stopped?\n a. fed must stimulate the economy with expansionary monetary…

value: 2\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\n# 9/15
Answer
Brief Explanations:
Expansionary monetary policy by the Fed, reducing interest - rates, and increasing the money supply are all ways to combat deflation. Expansionary monetary policy stimulates economic activity. Lowering interest rates encourages borrowing and spending. Increasing the money supply boosts liquidity in the economy.
Answer:
D. all of the above