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nydimaria [60]
3 years ago
5

Which of these actions of the Federal Reserve can slow economic growth?

History
2 answers:
g100num [7]3 years ago
6 0

Answer:

it is D you guys

Explanation:

elixir [45]3 years ago
4 0

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.

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