Ask Question
6 November, 11:46

Out of fears that the money supply is too large, the federal reserve has decided to decrease the money supply. how could the federal reserve accomplish this?

+2
Answers (1)
  1. 6 November, 15:35
    0
    The money supply can be reduced by not continuing to print new bills. Banks could be asked not to distribute more than a set amount of money, thereby lessening the amount of money put into general circulation. Sellers could raise the price of their goods and services. When prices rise, people take a closer look at their goals and their disposable income. Cost of living usually results in more prudent spending, more savings, and less money in general circulation.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Out of fears that the money supply is too large, the federal reserve has decided to decrease the money supply. how could the federal ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers