Respuesta :
The federal reserve is planning to conduct expansionary monetary policy during a recession , a tool they may consider using are open market asset purchase, discount lending, reserve regulations etc.
These tools are used to re-inflate the economy in the recession period.
Open market operations are operations under which purchasing of debts at lower rates from the open market which results in injections of money in the market which increases the aggregate demand and solves problem of recession.
Discount lending means directly lending the funds to bank when they needed at lower interest rates.
The Federal reserve instructs bank not to hold capital for the redemption purpose and lends loan to the people .
By taking these steps recession problem can be solved to great extent.
To know more about recession:
https://brainly.com/question/14735206
#SPJ1
