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By buying bonds in the open market(correct answer for apex)

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Q: How might the federal reserve response to a slowdown in economy or recession?
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How might the federal reserve respond to the slowdown in the economy or recession?

By buying bonds in the open market


Which of the fiscal tools would the government use to get the economy out of a recession?

Increase federal expenditures


Which type of policy would the federal reserve use if the economy were entering a recession?

loose monetary policy


What are two things that helped cause a major recession in America during the early 1970s?

{Stagnating economy} {Massive Federal debt}


How does the government typically change fiscal policy to try to improve the U.S. economy during a recession?

increasing federal spending


How did Jackson's actions hurt the economy?

Jackson removed federal funds from the Bank of the United States. The forced them to call in loans they had made, which hurt business in the Northeast and brought on a recession.


What can the federal government do to try to bring the economy out of recession?

the federal reserve would try to lower nominal interest rate (monetary policy), not part of govt. The federal govt. would stimulate spending, either by lowering taxes or pumping money into the economy and spending more.


Martin van Buren's response to the Panic of 1837 was to?

Government was not in the business of intervening in the economy in 1837. This logic that Van Buren inherited from Andrew Jackson (whose effort to eliminate the National Bank of the United States was the very definition of keeping the Federal Government out of the economy) would be disastrous. His seeming unwillingness to keep Americans get out of his recession/depression would lead to his lost for re-election in 1840.


How did Jacksons actions hurt the nations economy?

Jackson removed federal funds from the Bank of the United States. The forced them to call in loans they had made, which hurt business in the Northeast and brought on a recession.


Which statement is trueA recession is shorter than a depression.A recession occurs when the federal budget is balanced.A recession is closely related to a presidential veto of an act of Congress.A recession is longer than a depression?

A recession is shorter than a depression.


What was the federal governments immediate response to the economic crisis of the 1930s?

The federal government did not have an "immediate" response. It did introduce protectionism, in which they add tariffs, or taxes on foreign imports, so that Canadians would by Canadian products, thus stabilizing the economy. This action was a replication of what the U.S did.


What was the effect of president roosevelts attempt to balance the federal budget?

economic recession