How Does The Fed Stimulate The Economy

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America's central bank, the Federal Reserve, has several methods by which to fight recession. Among other measures, the Fed can raise or lower interest rates as economic circumstances require; it can sell and buy U.S. government debt - Treasury bills and notes - and it can extend cash and or credit to various financial institutions. In its ongoing effort to fight the recession and stimulate the economy, the Fed has used all of those

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