Considering the available options, the Fed may respond to a recession by "decreasing interest rates."
What is a Recession?
A recession is an economic period in which trade and industrial activity decrease due to lower demands from consumers or the people.
Economically, a recession occurs when GDP decline is in two successive quarters.
Therefore, to encourage higher demands from the people, the government decreases interest rates which makes people borrow and have more money to spend.
Hence, in this case, it is concluded that the correct answer is option B. "decreasing interest rates."
Learn more about Recession here: https://brainly.com/question/532515
