The correct phrase is "<span>Using monetary policy, the Federal Reserve increases to reduce the money supply in the economy. Using (contractionary) monetary policy, the federal reserve increases (interest rates) to reduce the money supply in the economy. "
In order to achieve a contractionary policy (contracting, or shrinking, the money supply), the Federal Reserve will raise its primary interest rate, namely the overnight borrowing rate. This makes it more expensive for big banks to borrow money from the government for their daily operations, such as investing and loaning the money themselves, which in turn makes them less willing to do so in larger amounts.
In this way, the increase in interest rates lowers the amount of money circulating from these big banks, and increases the amount sitting in the Federal Reserve, out of circulation, thus reducing the money supply. </span>
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Answer:
Atoms consist of three parts:
Protons: Protons are the basis of atoms. While an atom can gain or lose neutrons and electrons, its identity is tied to the number of protons. ...
Neutrons: The number of neutrons in an atom is indicated by the letter N. ...
Electrons: Electrons are much smaller than protons or neutrons and orbit around them.
Explanation:
In a small town, people are divided into two opposing sides. Those who support the British rule are called Loyalists while those who are against the colonizers are the Patriots. Most of the Loyalists hold office positions and felt that the British will win the war. However, the Patriots still want to gain independence from the colonizers.
