Option (b). Economic

Economic practices represent the balance between what individuals, companies and policymakers want to purchase and what they want to sell. In the short term, based on the next one to two years, economic policy has a stronger effect on consumption. If the market is sluggish, for example, the Federal Reserve attempts to raise customer and company demand by lowering interest rates or buying financial securities.

The stimulus of tax cuts or budget reductions depends on the size of the economy. If it works similar to capacity and the Federal Reserve is not limited by a zero lower interest rate bound, monetary policy will have a minimal short-term economic impact, largely because the Fed will balance fiscal stimuli with interest rate increases. However, if the economy is a long way from potential