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puteri [66]
2 years ago
13

The federal reserve has the power to issue money but does not influence interest rates. true false

Social Studies
1 answer:
OlgaM077 [116]2 years ago
3 0

The Federal Reserve can issue money but does not affect interest rates. One of the goals of monetary policy is to make sure that the inflation rate and the across-the-board rate of growth in the economy are the same.

<h3>How does the Federal Reserve affect interest rates?</h3>

The Fed also places the discount rate, the interest rate at which banks can borrow straight from the central bank. If the Fed increases interest rates, it improves the cost of borrowing, making both credit and investment more costly. This can be done to restrict an overheated economy.

To learn more about Federal Reserve visit the link

brainly.com/question/17097530

#SPJ4

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