How might the federal reserve respond to a slowdown in the economy of rescission?

by buying bonds in the open market

by increasing the reserve requirement

by increasing the discount rate

by selling bonds in the open market

The correct answer is A) by buying bonds in the open market.

The Federal Reserve might respond to a slowdown in the economy of rescission by buying Bonds in the open market.

The Federal Reserve is one of the most important institutions in the United States. It plays the role of a central bank in America. Also known as the Fed, the Federal Reserve was founded in December 1923 plays an important role in controlling the monetary system, supervising banks, and maintaining inflation in the country to avoid sudden increment of prices.