The Federal Reserve (the Fed) is the central banking system of the United States. One of it functions is to manage the nation's money supply through monetary policy in order to maintain the stability of the financial system and the economy.
The Fed had the power<em> to increase the money supply</em>. If the Fed believes that the economy is operating well below its potential level of output, the money supply is <em>increased in order to stimulate the output and employment</em>. Output is the quantity of services and goods produced.
To increase the money supply means that people will have <em>more or excess</em> <em>money</em> to spend. Consumption will <em>increase</em>, people will demand more goods and services. Some may want to deposit the excess money in banks making the bank's excess reserves richer ( banks will own more money). If the banks own more money, they are willing to lend more. Banks will<em> lower</em> <em>interests rates</em> to motivate borrowing.
As the result of increased consumption and investment ( more money available, lower interests rates ) the country's<em> GDP will increase</em>. GDP is the market value of all the goods and services produced in the USA during a specific time.
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Achieving independence is an essential part of your child’s journey to adulthood. To make this journey successfully, children need freedom to try new things. But they still need your guidance and support too. Here are some ideas to help you and your child find the right balance.
Carver was one of the greatest inventors. He discovered over 300 hundred uses for peanuts, he also discovered hundreds of uses for soybeans, pecans, and sweet potatoes. Hope this helps! :)
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The major Allied powers in World War I were Great Britain (and the British Empire), France, and the Russian Empire, formally linked by the Treaty of London of September 5, 1914.
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Andrew Jackson. The Manifest Destiny, being the goal of reaching "sea to shining sea," was a major goal for this president. He was the president who initiated the Lewis and Clarke expedition. Drop a thanks if this helped !
