Asked by
Md.Mohabbot Hussain
on Nov 16, 2024
Verified
The Fed can influence the money supply by changing the interest rate it pays banks on the reserves they are holding.
Fed
Short for the Federal Reserve System, it is the central banking system of the United States, responsible for monetary policy.
Reserves
Deposits that banks have received but have not loaned out.
Interest Rate
The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a specified period.
- Understand the principles of monetary and fiscal policies and their effects on overall demand.
- Understand the connection between the supply of money, interest rates, and the demand within the economy.
Verified Answer
KR
Learning Objectives
- Understand the principles of monetary and fiscal policies and their effects on overall demand.
- Understand the connection between the supply of money, interest rates, and the demand within the economy.
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