Question

When the federal reserve increases interest rates, investment spending ________ and gdp ________.

Answer 1

When the federal reserve increases interest rates, investment spending increases and GDP increases.

The U.S. central banking system—the Federal Reserve, or the Fed—is the maximum powerful economic institution within the U.S, perhaps the arena. Its core duties include placing hobby quotes, managing the money supply, and regulating monetary markets.

it is ruled by way of the presidentially-appointed board of governors or Federal Reserve Board (FRB). Twelve regional Federal Reserve Banks, located in towns throughout the nation, regulate and oversee privately owned commercial banks.

via overseeing the country's banks and influencing hobby quotes, the Fed impacts the economy and people' financial lives. at the same time as it doesn't interact without delay with people, it guarantees they are able to deposit a test, use a debit card, and switch price range correctly and always.

Learn more about Federal Reserve here:- brainly.com/question/25817380

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