If the United States falls into a recession, which action would the Federal Reserve take to encourage employment?

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asked Sep 23, 2017 20.9k views

1 Answer

William Xyz · Answer 1 · 2017-09-27T17:47:52+0000

Hello!

The options are:

A. Buy government securities
B. Increase reserve requirements
C. Raise federal funds and prime rates
D. Sell government securities.

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The correct answer is buy government securities, because there will be the injection of state money into the economy, expanding the demand for production and requiring more staff in service.

If the United States falls into a recession, which action would the Federal Reserve take to encourage employment?

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