In a recession, the Fed usually sells short-term government securities to increase interest rates and decrease spending.

Name: In a recession, the Fed usually sells short-term government securities to increase interest rates and decrease spending.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

In a recession, the Fed usually buys short-term government securities to decrease interest rates and increase spending, as part of its efforts to stimulate the economy. Selling securities would have the opposite effect.

In a Recession, the Fed Usually Sells Short-Term Government Securities