If the Fed is concerned with recession it will ________ the federal funds rate in order to ________ aggregate demand.

Name: If the Fed is concerned with recession it will ________ the federal funds rate in order to ________ aggregate demand.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

When the Federal Reserve is concerned with recession, it will lower the federal funds rate to decrease the cost of borrowing. This encourages spending and investment, thereby increasing aggregate demand.

If the Fed Is Concerned with Recession It Will ________