The Fed Usually Responds to a Recession By

question 152

Multiple Choice

The Fed usually responds to a recession by:

• A)buying short-term government debt from banks.
• B)selling short-term government debt to banks.
• C)raising interest rates.
• D)increasing reserve requirements.

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Definitions:

Comparative Advantage

The skill of a person or group to undertake a particular economic operation more adeptly than another activity.

Answering Phones

Involves handling incoming calls and may include tasks such as providing information, taking messages, or scheduling appointments.

Comparative Advantage

The skill of an individual, enterprise, or nation in producing a commodity or performing a service with a lower sacrifice of alternative opportunities than competing entities.

Oranges

A citrus fruit that is often considered in economic examples related to trade, comparative advantage, and consumer choice.