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30 December, 23:49

Which statement best describes how the Fed responds to recessions?

It sells more securities.

It charges banks more interest.

It increases reserve requirements.

It increases the money supply.

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Answers (2)
  1. 31 December, 02:31
    0
    The answer is "It increase the money supply". The Federal Reserve has a few strategies by which to battle the subsidence. Among different measures, the Fed can raise or lower financing costs as monetary conditions require; it can offer and purchase U. S. government obligation - Treasury bills and notes - and it can stretch out money or potentially credit to different monetary establishments.
  2. 31 December, 03:33
    0
    It increases the money supply.
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