Question

Which best describes one of the ways in which the Federal Reserve has an impact on the national economy? The Federal Reserve helps the economy by keeping inflation low in times of economic growth. The Federal Reserve keeps interest rates low, especially in times of economic growth, to make sure the economy grows as fast as possible. The Federal Reserve issues securities, which takes money out of circulation, slowing economic growth. The Federal Reserve collects income taxes, which hurts the national economy by taking money out of circulation.

Answer 1

One of the ways in which the Federal Reserve has an impact on the national economy is:
The Federal Reserve keeps interest rates low, especially in times of economic growth, to make sure the economy grows as fast as possible. 

When economy growth is stagnant and job growth is low, the federal reserve lowers the interest rates to encourage people to apply for loans and spend their loans on businesses or other ventures. Thus, spurring economic growth. 

Answer 2

Answer: The Federal Reserve helps the economy by keeping inflation low in times of economic growth.

Explanation: