The fed may respond to a recession by discouraging consumer borrowing.
The Fed uses a variety of monetary policy tools to reduce unemployment rates and boost prices in order to assist achieve this during recessions. These instruments include reserve regulation, discount lending, open market asset purchases, and forward guidance to control market expectations.
What is mean by borrowing?
Specifically, a term or phrase acquired from one language and incorporated into another anything borrowed, in particular: a term or phrase borrowed from one language and used in another: borrowing anything, specifically: borrowing is borrowing money.
More instances
Short-term borrowing is a common practice among institutions.
The cost of borrowing has gone up recently.
The deficit is funded by international borrowing.
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