According to monetarists, to prevent recessions, the federal reserve should
a) increase taxation.
b) decrease the money supply.
c) increase the money supply.
d) decrease government spending.

C) increase the money supply

Monetarism sees careful control of the money supply as the key to maintaining a stable economy. The ideas of monetarism were first put forth by economist Milton Friedman, who believed that those in charge of the money supply in a society should focus on maintaining price stability. Having too much cash in circulation stimulates inflation. However, in regard to your particular question, during a recession prices stagnate or decrease and interest rates are forced to drop as well. Monetarists would see an increase in the money supply as a way to turn prices back upward during a recession.