Question

To help the economy recover from a recession, the Federal Reserve should

O a. Lowering the interest rate by selling government securities
O b. Increasing the interest rate by purchasing government securities
O c. Lowering tax rates for people making less than $100,000 a year.
O d. Lowering the interest rate by purchasing government securities

Answer 1

Option D; Lowering the interest rate by purchasing government securities.

Step-by-step explanation:

Lowering the interest rate by purchasing government securities. This increases the money supply and encourages borrowing and spending, which can stimulate economic growth and recovery.