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Bingel [31]
3 years ago
10

What happened when the Federal Reserve limited the money supply?

History
2 answers:
Yanka [14]3 years ago
8 0

The correct answer is: "The limited access to currency stifled business growth."

When the money supply is limited, there is scarcity in the money market and the interest rate (the price of money) rises. Therefore, through this price adjustment, equilibrum is reached in the market again.

High interest rates disincentivate investment because<u> borrowing funds to finance new projects has become relatively more expensive. Therefore, businesses will not conduct expansion policies</u> under this scenario.

qaws [65]3 years ago
3 0

Answer:

The limited access to currency stifled business growth.

Explanation:

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Clerics from Buddhist set themselves on fire to protest pro-American south Vietnamese policies in the early 1960s in south Vietnam.

Buddhist monks set themselves on fire in 1963 as a protest against the puppet Diem regime in South Vietnam. Buddhist monk Thich Quang Duc publicly burns himself to death in a plea for President Ngo Dinh Diem to reveal “charity and compassion” to all religions.

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Priests who practiced Buddhism immolated themselves in the course of the ensuing weeks. Madame Nhu, the president's sister-in-law, referred to the burnings as “barbecues” and offered to deliver suits. In November 1963, South Vietnamese army officers assassinated Diem and his brother all through a coup.

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