1 year ago

When the federal reserve system wants to increase the money supply what will the Fed do?

Social Studies

1 answer:

dolphi86 [110]1 year ago

8 0

can lower the reserve requirements for banks, which allows them to lend more money

raising the banks' reserve requirements, Fed can decrease the size of the money supply

increase in the supply of money typically lowers interest rates which can stimulating spending

investopedia

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