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Which type of policy would the federal reserve use if the economy were entering a recession?
Wiki User
∙ 8y ago
loose monetary policy
Wiki User
∙ 8y ago
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How might the federal reserve response to a slowdown in economy or recession?
By buying bonds in the open market(correct answer for apex)
Which type of policy would the federal reserve use if the economy were entering a contractionary phase of the business cycle?
Loose monetary policy
What is the motto of Federal Reserve Police?
The motto of Federal Reserve Police is 'Protecting the nation's economy'.
How can the Federal Reserve use the reserve requirement the discount rate and open market operations during a time of recession?
Yes b/c this would increase the banker's availability to funds and thus increase the money supply, stimulating the economy.
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.
How might the federal reserve respond to the slowdown in the economy or recession?
By buying bonds in the open market
How might the federal reserve response to a slowdown in economy or recession?
By buying bonds in the open market(correct answer for apex)
Which type of policy would the federal reserve use if the economy were entering a contractionary phase of the business cycle?
Loose monetary policy
What is the motto of Federal Reserve Police?
The motto of Federal Reserve Police is 'Protecting the nation's economy'.
How can the Federal Reserve use the reserve requirement the discount rate and open market operations during a time of recession?
Yes b/c this would increase the banker's availability to funds and thus increase the money supply, stimulating the economy.
What is is the purpose of the Federal reserve bank?
The Federal Reserve Bank manages the U.S. economy by controlling the money supply.
Is the US federal reserve illegal?
No. The US Federal Reserve is very much legal. It is an integral part of the largest economy in the world. The Federal Reserve oversees the banking operations in USA and ensures that the economy is going the best way possible.
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.
To manage the growth of the US economy?
Federal reserve Bank
Why do interest rates fall during a recession?
The Federal Reserve lowers interest rates during a recession in hopes to spark economic activity (aka consumer spending).
In a period of low inflation and economic recession, the federal reserve is expected to take which action?
Tightening the money supply
What primarily determines the supply of money in the US economy?
Federal reserve
