If the Economy Is in a Recession, the Fed Is

question 27

Multiple Choice

If the economy is in a recession, the Fed is likely to:

• A) buy bonds through open market operations.
• B) increase the discount rate.
• C) increase the reserve requirement.
• D) decrease taxes.

---

Definitions:

REM Rebound

The phenomenon where there is an increase in the frequency and intensity of REM (Rapid Eye Movement) sleep after periods of REM sleep deprivation.

Sleep Disorder

A medical disorder of the sleep patterns of a person or animal, potentially causing distress or impairment in important areas of functioning.

REM Sleep

A sleep phase characterized by rapid eye movement, during which vivid dreams commonly occur.

Mentally Ill

Refers to individuals suffering from mental disorders that affect their thinking, mood, and behavior.