How could the government increase employment with monetary policy?

Question

A.
The government could decrease the discount rate.

B.
The government could decrease government spending.

C.
The government could increase government spending.

D.
The government could increase the discount rate.

Answer 1

C. The government could increase government spending.

Increasing government spending can stimulate economic activity, which in turn can lead to increased demand for goods and services, leading to businesses hiring more workers to meet that demand. This can help increase employment levels.