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

What is a derivative
Solve each equation and check your solution.
Which administrative agency governs regulatory compliance of the manufacturer?
255.43 divided by 8.9
25 points and brainliest if done completely In the following diagram, points C, A, and B are collinear. Use complete sentences to describe the sum of CA and AB
20% of the past 60% days how many days did it rain
should local people be involved in decisions in their cities
Find the amount in a bank account if you deposited $10,000 for 25 years at 6.25% interest compounded quarterly.
If you were planting a vegetable garden, what should you consider for the time of planting?
The Georgia state constitution contains a Bill of Rights. Which of these is MOST LIKELY the next entry in this section of the Georgia Constitution? Question 1 o