1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alina [70]
3 years ago
9

I will give Brainliest!!

History
2 answers:
lord [1]3 years ago
8 0

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.

Alla [95]3 years ago
3 0
  1. A decrease in interest rates.
  2. lower rates makes borrowing less costly to consumers,businesses and government,so consumption increases.
  3. Increased money supply stimulates output and employment.
  4. Fed can achieve this by purchasing US government securities
  5. banks are able to borrow at lower interest rates from the Fed.
  6. Increase in the money supply is mirrored by an equal increase in nominal output or GDP.
You might be interested in
This document was drafted by Georgia politicians in an attempt to transition the colony into a state within the newly independen
xenn [34]
The Articles of Confederation was drafted by Georgia politicians in an attempt to transition the colony into a state within the newly independent United States of America. It was <span>formally the </span>Articles of Confederation and Perpetual Union<span>, was an agreement among all thirteen original states in the United States of America that served as its first constitution.</span>
3 0
3 years ago
Overproduction in the farming industry led to
Leona [35]

Answer

speculation in the stock market

8 0
3 years ago
Who was the 4th presedent of usa
kkurt [141]

Answer : James Madison

5 0
3 years ago
Read 2 more answers
What was the led up to this picture? What was the history of it? <br> Please answer
Temka [501]
March on Washington for Jobs and Freedom. 28th Aug 1963
8 0
3 years ago
I POSTED THIS 5 TIMES PLZ HELP!!!!!!!!!!!!
monitta
<h2><em>Hello There!</em></h2>

<u> The Answer Too "What was England’s biggest issue following the French and Indian War?  and How did the colonists react to the Proclamation Act of 1763?" Is:</u>

  • <em><u>Britain wanted to control  the Western territories.</u></em>
  • <em><u>The colonists reacted by: First, they protested it, not nearly as they would protest future British policies. Second, they tried to ignore it.</u></em>

<em><u /></em>

<h2><em>Hope this Helps!! !Have A Great Day!!!</em></h2>
8 0
2 years ago
Other questions:
  • Young people have historically failed to participate in the election process - fower young people vote than those of other
    12·1 answer
  • The interior plains of the United States include the _____ and the _____<br> 15 POINTSS
    7·1 answer
  • Constitutional amendments must be approved by three-fourths of the
    7·1 answer
  • Name two major seaports in the British Colonies
    10·2 answers
  • Which of the following factors contributed to the decline of the Roman Empire​
    9·2 answers
  • Explain how a person’s petition gets officially noticed by the White House.
    8·1 answer
  • I need to know how do governments inspire courage during times of conflict?
    11·1 answer
  • CAN SOMEBODY QUICKLY HELP ME ON THIS ITS IM TAKING A TEST.
    13·1 answer
  • A constitutional
    9·1 answer
  • How long did it take for the declaration of independence to reach all the states?
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!