In order to combat a recession, the Fed will ________ the federal funds rate and thereby ________ the quantity of money.

Name: In order to combat a recession, the Fed will ________ the federal funds rate and thereby ________ the quantity of money.
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Question

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To combat a recession, the Federal Reserve (Fed) will lower the federal funds rate to decrease the cost of borrowing, which in turn increases the quantity of money in the economy by encouraging more lending and spending.

In Order to Combat a Recession, the Fed Will ________