Answer:
Suppose a huge increase in credit card frauds leads to many businesses refusing to accept payments by credit cards. As a result, people want to keep more cash on hand, increasing the demand for money. Assume the Fed does not change the money supply. According to the theory of liquidity preference, the interest rate will __increase__ , which causes aggregate demand to__decrease_
If instead the Fed wants to stabilize aggregate demand, it should ___increase__ the money supply by _purchasing__ government bonds.
Explanation:
The economy's aggregate demand will increase as a result of the increased preference for liquidity leads to an increase in consumer spending, thereby increasing the Gross Domestic Product. If the Fed increases the money supply in response to the increased preference for liquidity, it will cause a reduction in interest rates, thereby further increasing consumer spending.
Answer: U.S. banks that cannot borrow elsewhere
Explanation:
Lender of last resort is.a situation that occurs when the central bank in a country gives loans to the commercial banks in the country when they are going through financial difficulties.
In this scenario, The Federal Reserve S role as a lender of last resort involves lending to U.S. banks that cannot borrow elsewhere.
Right a argumentive essay about people political opinions xx
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I don't really understand the question.. Sorry if this doesn't help!
-EmojiQueen
<span>Financial deregulation was a big part of why profits soared during these years. With businesses feeling as if they had more freedom to use their profits as they saw fit, they were able to increase technology, innovation, and therefore, their overall profit margins, instead of having to use those profits for tax purposes.</span>
