Answer:
The correct answer is letter "A": can reduce the severity of economic busts.
Explanation:
Fiscal and Monetary Policies provide the government and the Federal Reserve (Fed) with two powerful tools to regulate the economy. Fiscal Policy refers to the economic impact of a government's spending and taxing policies. Monetary Policy, which the Fed controls, can also slow or ignite the economy. Ultimately its goal is to create cash built-up in the banking system.
