By buying bonds in the open market(correct answer for apex)
Increase federal expenditures
loose monetary policy
increasing federal spending
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.
there is a recession
By buying bonds in the open market
Increase federal expenditures
loose monetary policy
{Stagnating economy} {Massive Federal debt}
increasing federal spending
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.
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.
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.
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.
A recession is shorter than a depression.
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.
economic recession