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A situation in which the Fed holds interest rates constant (at a low level) in order to increase the
effectiveness of fiscal stimulus is known as ___________.
A. monetary policy that is non-cooperative and stringent
B. non-accommodating monetary policy action
C. non-accommodating monetary policy action
D. accommodating monetary policy action
Solution
D. accommodating monetary policy action

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  • 1. A situation in which the Fed holds interest rates constant (at a low level) in order to increase the effectiveness of fiscal stimulus is known as ___________. A. monetary policy that is non-cooperative and stringent B. non-accommodating monetary policy action C. non-accommodating monetary policy action D. accommodating monetary policy action Solution D. accommodating monetary policy action