2 years ago

Which statement best describes how the Fed responds to recessions?

Business

1 answer:

slavikrds [6]2 years ago

7 0

The federal government responds to recession by increasing the money supply in a country.

<h3>What is Recession?</h3>

Recession is term used to describe a general economic contraction which is identified by a fall in the gross domestic product of a country.

Before a country is said to be in recession, the GDP of that country must have fallen in two successive quarters.

The feds respond to recession by increasing the money supply in order to stimulate the local economy.

Learn more about recession at brainly.com/question/1417711

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