3 years ago

Why does the federal reserve choose to increase the money supply?

Business

1 answer:

SVETLANKA909090 [29]3 years ago

7 0

To control the supply of money to help stabilize the economy

Explanation:

An increase in the supply of money works both through lowering interest rates, which spurs investment, and through putting more money in the hands of consumers, making them feel wealthier, and this stimulates spending.

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