Explanation:
The statement in the Preamble that "We the People" establish the constitution expresses the principle of what? They needed their own government. Why do you think each state created its own constitution? What were some of the common features shared by the state constitutions?
D) The Federal Reserve increases the discount rate, which causes interest rates to rise and people to save rather than to spend. This action by the Federal Reserve slows the economic growth.
<u>Explanation</u>:
The <u>Federal Reserve </u>is the “central bank" of the United States of America. The Federal Reserve System is responsible for the money supply. The federal government follows <u>Fiscal Policy </u>to control recessions and encourage economic activity.
The Federal Reserve System expands or contracts the money supply based on <u>monetary policy</u>. The spending of consumers is automatically reduced, when the government increases the taxes on the product. This led to increase in saving the money rather than spending.