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think about it, if the economy expanse, more money will be needed

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Laverna Zieme

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2y ago

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Why might the Fed want to increase the money supply?

think about it, if the economy expanse, more money will be needed


When the Feds want to increase the money supply it?

The reserve requirement is 0.5. The Fed wants to increase the money supply by $1000.


If the fed wants to increase the money supply it should?

If the Fed wants to increase the money supply, they should buy the government bonds. The actions that can be used by the Fed to increase the money supplied is called the monetary policy.


Why in order to reduce the money supply the Fed might sell securities in the open market operations?

Because that is how FED removes money from circulation, thus reducing money supply. The opposite would be buying securities in open market operations in order to increase money supply.


How do you increase the value of a dollar?

Have the Fed's stop printing money!


What is the most likely effect of the fed lowering the discount rate on overnight loans?

An increase in the money supplyAn increase in the money supply


What is a not a way the fed can generate an increase in the money supply?

Cutting taxes


Describes the most likely effect of the fed buying millions of dollars in t-bonds?

an increase in the money supplyAn increase in the money supply


Do you want to be fed like a penguin chick?

me no but some other people might want to be fed like a penguin chick and there's your answer


How does the Fed increase the money supply when it buys bonds?

When it buy bonds- that money goes into the economy hence increasing the money supply


Which of the following can the Fed accomplish by raising or lowering the required reserve ratio?

Increase or decrease the money supply


What most likely effects the Fed lowering the discount rate on overnight loans?

An increase in the money supply