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If the economy slips into​ recession, the Fed​ ________ the federal funds​ rate, which​ ________ the short-minus-term interest​ rate, and​ ________ the quantity of money. WILL GIVE BRAINLIEST!

A. ​raises; lowers; increases
B. ​raises; lowers; decreases
C. ​lowers; lowers; decreases
D. ​lowers; raises; increases
E. ​lowers; lowers; increases

Respuesta :

fatimakincsem

The answer is: B  

raises; lowers; decreases  

Explanation:

If the economy slips into recession, the Fed raises the federal funds rate (to cope up with the recession)

which lowers the short-minus-term interest rate (so that people are encouraged to borrow more),

and decreases the quantity of money (by decreasing the quantity of money, the value of money will increase and it will help the economy to recover.)  


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