Question: Should the Fed increase or decrease interest rate when the economy is in recession? What does the effect of that action have on (1) inflation

Should the Fed increase or decrease interest rate when the economy is in recession?

What does the effect of that action have on (1) inflation and (2) economic growth, respectively?

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When the economy is in a recession the Federal Reserve the Fed typically decreases interest rates as a monetary policy tool to stimulate economic acti... View full answer

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