What the federal government will most likely do to stabilize the economy during a recession is to significantly change its spending.
In essence, some of the several attempts by the federal government to financially stimulate the economy during a recession is known as Economic stimulus.
Further ExplanationEconomic stimulus refers to the use of monetary policy changes by the government to stabilize the economy during a recession.
The government can utilize different strategies to stabilize the economy financially during a recession by reducing the interest rate, increasing its spending and many more.
Economic recession is when there is a decline in the general economy of a country and it is usually associated with different factors which include:
A drop in the stock marketA significant increase in unemploymentA decline in the housing marketA decline in Gross domestic productHigh inflationSome of factors that causes inflation include
High interest rate: high interest rate limit liquidity, that is, that won’t be enough money to investInflation: this is when the prices of goods and services are high generally over a period of timeReduced real wages: this implies the paycheck of workers can no longer sustain them.Reduced consumer confidence: consumers can decide not to spend money if they perceived the economy to be bad and this can also lead to inflation.LEARN MORE:
During a recession, what will the federal government MOST LIKELY do to stabilize the economy? https://brainly.com/question/10135250Which tool would the government most likely employ during a period of infilation to stabilize the economy https://brainly.com/question/11439999KEYWORDS:
economic stimulusrecessionfederal governmentinflationgoods and serviceshigh interest rate