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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.

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12y ago
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10y ago

The federal government has a few options when dealing with an economic recession. The most likely choice is to attempt to stimulate the economy by encouraging individuals to continue spending money. The government may choose to offer tax breaks to give people access to more money, making them more likely to continue spending.

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13y ago

the fed (federal reserve) which is independent, will lower the interest rate, the federal govt will usually pump money into the system

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