mrblake2476 mrblake2476

23-08-2022
Business

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If the economy is in decline, and the federal reserve wants to encourage banks to lend to consumers, which step will the fed likely take?

Respuesta :

iheonuchimere iheonuchimere

25-08-2022

Answer:

Expansionary monetary policy

Explanation:

When the economy is on a decline, the federal reserve reduces interest rates in the banking system to increasing lending and borrowing which props up economic activities.

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