When the Fed Is Worried That the Economy Is Heading

question 63

Multiple Choice

When the Fed is worried that the economy is heading into a recession, it

• A)decreases bank reserves.
• B)buys government bonds.
• C)orders all banks to decrease interest rates.
• D)recommends that Congress lower the federal funds rate.
• E)recommends that Congress conduct open market operations.

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Definitions:

European Wars

European wars refer to the various conflicts that have occurred within Europe throughout history, shaping its political boundaries, societies, and influence on global affairs.

Agricultural Revolution

A period of significant agricultural development marked by the introduction of new farming techniques and crops, leading to increased food production and population growth.

Natural World

The aspects of the environment that exist independently of human activities.

Soil Fertility

the ability of soil to support plant growth by providing necessary nutrients, water, and air.