If the United States falls into a recession, which action would the Federal Reserve take to encourage employment? A. Buy government securities B. Increase reserve requirements C. Raise federal funds and prime rates D. Sell government securities.

If the United States falls into a recession, the action that the Federal Reserve would take to encourage employment is A. buy government securities.

When they do that they pump money into the economy, which lowers interest rates, which in turn increases aggregate demand.