The Federal Reserve (the Fed) is the central banking system of the United States. One of it functions is to manage the nation's money supply through monetary policy in order to maintain the stability of the financial system and the economy.
The Fed had the power<em> to increase the money supply</em>. If the Fed believes that the economy is operating well below its potential level of output, the money supply is <em>increased in order to stimulate the output and employment</em>. Output is the quantity of services and goods produced.
To increase the money supply means that people will have <em>more or excess</em> <em>money</em> to spend. Consumption will <em>increase</em>, people will demand more goods and services. Some may want to deposit the excess money in banks making the bank's excess reserves richer ( banks will own more money). If the banks own more money, they are willing to lend more. Banks will<em> lower</em> <em>interests rates</em> to motivate borrowing.
As the result of increased consumption and investment ( more money available, lower interests rates ) the country's<em> GDP will increase</em>. GDP is the market value of all the goods and services produced in the USA during a specific time.
<span>Total federal revenues doubled from just over $517 billion in 1980 to more than $1 trillion in 1990. In constant inflation-adjusted dollars, this was a 28 percent increase in revenue.3As a percentage of the gross domestic product (GDP), federal revenues declined only slightly from 18.9 percent in 1980 to 18 percent in 1990.4<span>Revenues from individual income taxes climbed from just over $244 billion in 1980 to nearly $467 billion in 1990.5 In inflation-adjusted dollars, this amounts to a 25 percent increase.</span></span>
Characteristics of sourcing includes a reliable source or document, Evidence, Reasoning
The reason that Columbus sailed the sea was.
<span>B. He wanted to prove that the world was round</span>
The statement that uses a correct capitalization is "<span>Franklin D. Roosevelt was the first president to appear on television, and he did it in 1939."</span>
