The Federal Reserve increases the money supply when it is trying to encourage the economy to

A. Grow

B. Shrink

Question

History

Dangelo Orr

9 February, 10:56

The Federal Reserve increases the money supply when it is trying to encourage the economy to

A. Grow

B. Shrink

+4

Answers (1)

Know the Answer?

Andre · Answer 1

Economy to grow

It is called an expansionary fiscal policy. The government often reduce reduce taxation and buy off treasury bond to ensure that banks have more money to lend, and people have more money to invest.

The Federal Reserve increases the money supply when it is trying to encourage the economy toA. GrowB. Shrink

The Federal Reserve increases the money supply when it is trying to encourage the economy to

A. Grow

B. Shrink