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.

Explanation:

The Federal Reserve is the “central bank" of the United States of America. The Federal Reserve System is responsible for the money supply. The federal government follows Fiscal Policy to control recessions and encourage economic activity.

The Federal Reserve System expands or contracts the money supply based on monetary policy. 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.

4 0

3 years ago

Read 2 more answers

What Japanese attack on Hawaii, a US territory, prompted the U.S. to enter World War II?

Alex Ar [27]

Pearl Harbor is the answer to the question

6 0

3 years ago

Read 2 more answers