At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Get the answers you need quickly and accurately from a dedicated community of experts on our Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

How can the government react if the economy is facing a recession?

Sagot :

Answer:

If recession threatens, the central bank uses an expansionary monetary policy to increase the money supply, increase the quantity of loans, reduce interest rates, and shift aggregate demand to the right.