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When the federal reserve raises interest rates how does it affect the economy?
Wiki User
∙ 15y ago
it increase their customers money by a greater margin than before so it may help the economy start running again so people will start buying again
Wiki User
∙ 15y ago
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Which of these can affect the economy by increasing or decreasing the money supply?
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
Why does the Federal Reserve alter monetary policy?
The Federal Reserve alters monetary policy to influence the amount of money and credit in the U.S. economy. These changes affect interest rates and the performance of the economy. The end goals of monetary policy are sustainable economic growth, full employment and stable prices.
How does the federal reserve reducing the interest rate affect the bond market?
The cost of borrowing money.^%
How interest rate affect the sa economy?
how interest rates affect the sa economy
How the the tools used by the Federal Reserve to control the money supply influence the money supply and in turn affect macroeconomic factors?
The economy of a country is affected by an infinite number of factors.
What are the factors that affect the economic growth?
Things that can affect economic growth include: interest rates, the political environment, weather and a host of other things. The Federal Reserve sets monetary policies to help combat these factors.
What industry did the federal act mainly affect?
The Federal Reserve Act mainly affected the banking industry.
How do the federal reserves actions influence the money supply?
The Federal Reserve wants to affect the money supply because the amount of money on the street at any given time affects the overall value of the individual dollar.
What are three ways the federal reserve can affect the money supply?
It can put a reccesion or inflation.
How do changes in monetary policy affect your family's spending and business spending in the economy?
[If the Federal Reserve is selling bonds, banks will have lower reserves due to decreased deposits. With the decreased reserves, they will have to decrease the number and size of loans. The decrease in loans and the resulting higher interest rates discourage business (and consumer) borrowing and spending. The decreased spending in the economy should result in decreased business production and employment.]
What industry did the federal reserve act mainly affect-?
The Federal Reserve Act mainly affected the banking industry.
What industry did the federal reserve mainly affect?
The Federal Reserve Act mainly affected the financial institutions across America. It also affected the bankers, lenders, credit bureaus, and especially the stock markets.
