if the united states falls into a recession, which action would the federal reserve take to encourage employment?
a. buy government securities
b. increase reserve requirements or
c. raise federal funds and prime time rates ?

Question

if the united states falls into a recession, which action would the federal reserve take to encourage employment?  
a. buy government securities 
b. increase reserve requirements or 
c. raise federal funds and prime time rates ?

anonymous · Answer

Buy government securities to increase money supply to reduce interest rates to encourage borrowing and investing.