If the Economy Is in a Recession, the Fed Could

question 107

Multiple Choice

If the economy is in a recession, the Fed could:

• A) buy bonds through open market operations to increase spending in the economy.
• B) sell bonds through open market operations to increase spending in the economy.
• C) increase the discount rate so banks will increase their lending in the economy.
• D) increase the reserve requirement to increase confidence in the financial system.

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Definitions:

Sales Call

A communication method, often a phone call or face-to-face meeting, initiated by a sales representative towards a potential buyer to sell a product or service.

Small Talks

Casual or informal conversation about non-essential or trivial topics, often used to initiate social interaction.

Competitors' Activities

Actions and strategies implemented by competing businesses in the market.

Market Opportunities

Potential chances to meet unfulfilled customer needs or demands in the market, often identified for strategic business growth.