joshlakatos8 joshlakatos8
  • 03-01-2018
  • Social Studies
contestada

The Fed may respond to a recession by

Respuesta :

pmayl
pmayl pmayl
  • 03-01-2018
One answer is Lowering Interest Rates
The Fed may lower interest rates, which theoretically should (and usually does) increase the amount of money in circulation in the economy.
This is because banks are able to less expensively borrow money from the Fed. They also earn less on bonds from the Fed that they're holding, motivating them to sell them back to the government and invest their money elsewhere.

More money in circulation ideally stimulates economic activity. 
Answer Link
simonemiller97 simonemiller97
  • 04-10-2018

by decreasing the interest rates

Answer Link

Otras preguntas

Specialized nerve cells called _____ are responsible for communication in the nervous system
What is a bowell movement?
Minus divided 3K -12 equals 48
Which of the following shows 20 + 15 rewritten using the distributive property and the GCF of the addends? 10(2 + 2) 5(4 + 3) 5(5 + 3) 10(20 + 15)
What advantage does the membrane bound organelles give a eukaryotic cell over a prokaryotic cell? 1. The membrane bound organelles allow for multiple reaction
Using the system by graphing what is 2x - y = 8 and x + y = 4 ?
How did zoning laws help to reduce the danger from pollution
Evaluate the expression 43 ÷ (7 − 3) × 2. Numerical Answers Expected! Answer for Blank 1:
Explain the law of segregation
Mandy is thinking of a prime number that is greater than 41 and less than 47. What is many number