Asked by Henil Deepak Patel on Apr 29, 2024
Verified
If the country is heading into a recession,the Fed might be able to counteract this by
A) increasing the discount rate.
B) carrying out an expansionary fiscal policy.
C) forcing the government deficit to decrease.
D) acting to increase the money supply.
Recession
An episode of provisional economic downturn, during which industrial and commercial activities decrease, customarily identified by a GDP drop in two consecutive quarters.
Money Supply
The sum of all financial resources present in an economy at a given moment, encompassing currency, deposits in banks, and other assets that can be quickly converted into cash.
Federal Reserve
The principal banking authority in the United States, responsible for overseeing the nation's financial and monetary systems.
- Comprehend the effects of Federal Reserve policies on inflation and economic recession.
Verified Answer
Learning Objectives
- Comprehend the effects of Federal Reserve policies on inflation and economic recession.
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