c it increases the money supply
When the economy enters a recession, the Federal Reserve (often referred to as the Fed) typically responds by increasing the money supply. This is done to stimulate economic activity by making borrowing cheaper for businesses and consumers. Lower interest rates mean that more people are likely to take loans to invest in businesses or make significant purchases, which can help to spur economic growth. The other options, such as decreasing tax rates or increasing government expenditures, are generally actions taken by fiscal policy rather than monetary policy, which the Fed controls. Increasing interest rates would be counterproductive during a recession as it could further suppress economic growth.