Answer:
Businesses borrow more money.
Consumption increases.
Explanation:
The Federal Reserve is the body responsible for conducting monetary policy in the US. Monetary policy basically consists of two actions. The increase / decrease in the money supply in the economy and the increase / decrease in the interest rate. These actions may happen together, but they are technically independent.
When the Federal Reserve increases the supply of money in circulation, more money is circulated through loans and personal spending. This is considered a policy of stimulating the economy and can be done independently of interest rate changes, although the reduction of interest is also a stimulus monetary policy that can be done in conjunction with the increase in the money supply.
Cause aggregate demand and GDP to decrease
Answer:
$8400
Explanation:
to find 3% you multiply 280,000 by 0.03
Answer:I believe it is A,
Explanation:
because when demand increases so does price. That is called demand-pull inflation. This also means economic conditions are strong.
