The US Federal Reserve helps strengthen the economy when it controls the supply of money, the availability of credit, and

History

2 answers:

Luba_88 [7]3 years ago

6 0

This would be easier if we had answer choices but to my knowledge I BELIEVE it is monetary policy

ValentinkaMS [17]3 years ago

3 0

The correct answer is: "the interest rates".

Central banks, such as the Federal Reserve, are in charge of designing and applying the monetary policy, which consists on influencing the amount of money in circulation in the economy and the interest rate levels, through mechanisms such as the open market operations.

These two factors allow to determine the availability of credit in the economy and its investment levels, which in turn determine GDP figures and economic growth levels. The main objectives of the monetary policy are to ensure high economic growth, high employment levels and price stability (low inflation).

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Hey bud...

none of the continent is smaller than Europe and Australia.

They are listed last in the rankings of largest to smallest in land area.

hope it helps...!?!?!

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The economy operates according to the law of supply and demand for goods and services. According to this theory, the interaction between supply and demand for a good or service fits and the vector of adjustment is price.

If the price is high, there is more supply than demand. If the price is low, there is more demand than supply. If demand increases, price increases and supply increases. If demand falls, the price falls. That is, the price makes the interaction. There will be a moment where the quantity offered is exactly equal to the quantity demanded, at which point the price practiced is the equilibrium price.

So if an economy is in equilibrium at a time and then the price charged is higher than the equilibrium price, it means that demand has gotten higher than supply.

However, none of the alternatives would explain why a price is charged above the equilibrium price. The answer is the reverse of what is written in alternative (A). The truth is this: As the quantity demanded rises, the price rises above the equilibrium price. This is the answer.

The alternative (B) is true, although it does not answer the question of the problem. If prices rise, demand falls. This is because the high price discourages consumption.

BTW, I'm an economist and I'm sure.

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elena55 [62]

Answer:

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Explanation:

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