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:
Mohammad Al Jinnah was a supporter of a separate Muslim state.
Correct Answer : Option B
Explanation:
Mohammad Ali Jinnah was the supporter of the separate Muslim state, although he did not favor this ideology initially, but later he wanted a separate state and eventually laid to the foundation of Two nation theory.
The Two nation theory is the basic founding stone for the creation of the Muslim nation, Pakistan. Jinnah was the leader of All India Muslim League since the creation of the same in the year of 1913. After which, with the Independence from British colonialism, Pakistan was created and he sworn in as the Prime Minister of the newly formed nation of Pakistan.
