Macroeconomics- "lean against the wind"?

C

Caitlin

New member
If aggregate demand shifts because of a wave of irrational exuberance, what would those who favor a "lean against the wind" policy advocate?

a) they would advocate for the federal reserve to increase money supply or the government to increase taxes
b) they would advocate for the federal reserve to increase money supply or the government to decrease taxes
c) they would advocate for the federal reserve to decrease money supply or the government to increase taxes
d) they would advocate for the federal reserve to decrease money supply or the government to decrease taxes

Please help--- having lots of trouble with my econ homework! Thanks!
 
Back
Top