Question

What is the most likely reason the FED would raise the interest rate on required and excess reserves?

Answer 1

The Federalist Papers were written by three authors and were discussed the three topics related to the Constitution. John Jaywrote about United States relationships with other countries,  

James Madisonwrote about government structure, and Alexander Hamilton wrote about the weakness of the Articles of Confederation.

The Federalist Papers comprise of eighty-five letters inscribed to publications in the late 1780s to support acceptance of the United States Constitution. With the Constitution demanding permission from nine of thirteen states, the newspapers were overwhelmed with messages about the questionable document. These articles, reproduced in the animation both of publication and consistent evidence, were issued in book form as The Federalist in 1788.

Further Explanation

The Articles of Confederation and the Union was an alliance among the 13 independent states of the United States of America which assisted as its primary constitution. It was established, after much deliberation from the year 1776 in the month of July 1776 and November 1777, on November 15, by the Second Continental Congress and forwarded to the republics for confirmation. The Articles of Confederation arose to control on March 1, 1781, after being approved by all 13 states. A guiding system of the Articles was to defend the freedom and independence of the states. The weak central administration authorized by the Articles accepted only those commands which the ancient colonies had identified as referring to king and legislature.

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Answer Details

Grade; High School

Subject; History

Topic; Federalist Paper

Keywords

Articles, perpetual, agreement, congenital congress, ratification, sovereignty, independence, former, America, ratification, parliament,  

Answer 2

The most likely reason is to meet the goal of price stability. One of the main jobs of the FED is to balance the market, raising the interest rate on required and excessing reserves is a way to high the price of some resources. This adjustment could result in other consequences, but the price of most of the resources would get balanced.