In September 2012 unemployment was high and the Fed was concerned that the economy would re-enter a recession. Therefore the Fed announced that it would ________ its purchases of securities in an effort to ________.

Question

Quizplus · Accepted Answer

The Fed increases its purchases of securities in an effort to keep the federal funds rate low, which in turn stimulates the economy by making borrowing cheaper.

In September 2012 Unemployment Was High and the Fed Was