If the Fed wants to fight recession, it will_{--------------------}the federal funds rate in order to _{--------------------} A)lower; increase aggregate demand B)lower; increase aggregate supply C)raise; decrease aggregate supply D)raise; increase aggregate supply E)raise; increase aggregate demand

Question

Quizplus · Accepted Answer

Lowering the federal funds rate makes borrowing cheaper, encouraging spending and investment, which increases aggregate demand to combat recession.

If the Fed Wants to Fight Recession, It Will--------------------the Federal

If the Fed Wants to Fight Recession, It Will_{--------------------}the Federal