Question

The Fed's aim in responding to a recession is to decrease

A. Consumer Borrowing
B. Interest Rates
C. Government Spending
D. Available Credit

Answer 1

i tink the answer is C or B but i'm picking B

Answer 2

Letter B. Interest Rate.

Step-by-step explanation:

The goal of the Fed in responding to a recession is to lower the interest rate. In a recessionary situation there is low growth and therefore an increase in unemployment. In this situation, using the expansionary monetary policy, the Fed can increase the money supply, which culminates in the fall in the interest rate. As such, it contributes to increasing aggregate demand in economic activity by increasing consumption and cheaper credit with lower interest rates. interest rates.