Author Question: According to the textbook, when recession threatens, how does the Fed typically respond? a. by ... (Read 181 times)

darbym82 · **on:** Jul 10, 2018

According to the textbook, when recession threatens, how does the Fed typically respond?

a. by expanding the money supply and lowering interest rates
b. by raising the discount rate and thereby the cost of borrowing by banks
c. by raising the prices of certain products in the marketplace
d. by raising the reserve requirement of banks and thereby reducing the amount of money they have to loan out

Question 2

The question of the proper relationship between governments and markets is the subject of __________.

a. the American dilemma
b. great debate
c. partisan disagreement
d. political economy