What methods could the Federal Reserve use to stabilize the economy?(1 point)
Responses
The Federal Reserve provides loans to banks that cannot obtain loans to prevent shortages in cash.
The Federal Reserve prevents banks from lending who do not have the reserves to lend.
The Federal Reserve issues money to individuals to stimulate the economy.
The Federal Reserve increases interest rates to incentivize banks to lend.
1 answer
The Federal Reserve could also use open market operations, adjusting reserve requirements, and forward guidance to stabilize the economy.
1 answer