If the Fed is concerned about a possible recession,it ________ the federal funds rate,which ________ the quantity of money and ________ the amount of bank loans.
A)raises;decreases;decreases
B)lowers;decreases;decreases
C)lowers;increases;decreases
D)raises;increases;increases
E)lowers;increases;increases

Question

Quizplus · Accepted Answer

If the Fed is concerned about a recession, it typically lowers the federal funds rate to stimulate economic activity. Lowering the rate increases the quantity of money and the amount of bank loans, encouraging spending and investment.

If the Fed Is Concerned About a Possible Recession,it ________