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.
Answer:
Located on America's Atlantic coast, The New England Colonies included Connecticut, Rhode Island, Massachusetts, and New Hampshire. The Middle Colonies included Delaware, Pennsylvania, New Jersey, and New York.
The economic diversity of the 13 colonies generated a large income for British Empire's coffers. It also gave the colonies, wealth and political motivation to start the American War of Independence. Finally, the colonies came together to rebelliously form the United States of America.
Grain mills, sawmills, and shipbuilding were popular pursuits, and the harbors along the coast were excellent for promoting trade
Explanation:
They taxed traders coming and leaving Ghana, and they used their armies to protect trade routes.
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