Question

The economy is beginning to slip into a recession.​ further, data indicate that inflation is low. the fed will most likely respond to this state of the economy by

Answer 1

Purchasing government securities to lower the interest rate

Step-by-step explanation:

Lowering interest rates is used to stimulate the economy. It is also easier to lower interest rates when in inflation is low.

Answer 2

purchasing government securities to lower the interest rate

Step-by-step explanation:

When the FED buys public titles what it generates is that these documents go out of the market and pass to its possession, to its injected money to the economy, that is to say, that the monetary offer is greater, therefore, the low-interest rate.

By lowering the interest rate automatically generates higher levels of income and production.

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