According to the textbook,when recession threatens,how does the Fed typically respond?

Question

Quizplus · Accepted Answer

When recession threatens, the Fed typically responds by expanding the money supply and lowering interest rates. This is done in order to encourage borrowing and spending, which can stimulate the economy and help to prevent or alleviate a recession. By making it easier and cheaper for individuals and businesses to borrow money, the Fed can increase the amount of money flowing through the economy, which can lead to increased investment, hiring, and growth.

According to the Textbook,when Recession Threatens,how Does the Fed Typically