which statement best describes how the fed responds to recessions?\no it sells more securities.\no it…
which statement best describes how the fed responds to recessions?\no it sells more securities.\no it charges banks more interest.\no it increases reserve requirements.\no it increases the money supply.
Answer
Brief Explanations:
During a recession, the Federal Reserve (the Fed) aims to stimulate the economy. Selling more securities would reduce the money supply, charging banks more interest would make borrowing more expensive and reduce lending, and increasing reserve requirements would limit the amount of money banks can lend. Increasing the money supply, on the other hand, makes more funds available for borrowing and spending, which can help boost economic activity.
Answer:
It increases the money supply.