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24 August, 20:27

Which statement best describes how the Fed responds to recessions?

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  1. 24 August, 22:16
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    The correct answer is it buys more securities.

    The Fed (Federal Reserve) responds to recessions are the Federal Reserve Banks lower interest rates and provide bank liquidity at the same time. Being a private institution, it has its own regulations. The Fed does not depend on any government department.

    The Federal Reserve headquarters are located in Washington D. C., a few minutes from the White House and the Capitol.
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