Question

Which policy would the Federal Reserve most likely adopt during a recession?

Answer 1

Answer:

Explanation:

Since you have not given any choices, the best I can do is list what the fed would most likely do.

Their first step would be to lower interest rates. That would mean that consumers and corporations would pay out less in borrowing cost and free up money for them to spend in other ways. That is all that the fed should do. That is all they were, in the beginning, mandated to do.

Since the beginning, they have begun to become creative and have done all sorts of things to keep out of a recession. They've printed more money. Literally. They done this producing dollars that have no backing whatever. This action has created wealth for institutions like the banks and very wealthy wall street investors. It has done nothing for the middle class. Likely both your parents work. When I was raising my kids, it only required that I be out of the house. We lived comfortably on just 1 wage.