Respuesta :
If the economy is experiencing a recession, The federal reserve enacts an expansionary monetary policy that results in lower interest rates.
What do you mean by expansionary monetary policy?
For strengthening an economy, a central bank may use an expansionary monetary policy.
During a recession, the central bank may use policy for stimulating the economy by expanding the money supply resulting in lower interest rates and borrowing costs.
Thus, the interest rate will be lower to boost consumption and investment.
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