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What are three ways the federal reserve can affect the money supply?

It can put a reccesion or inflation.


How would the inflation rate affect the hotel and restaurant industry in the Philippines?

The behavior (rise or fall) of the inflation rate directly affects consumer spending, and indirectly the hotel and restaurant industry.


How does the federal government affect monetary policy?

The federal government influences monetary policy primarily through its relationship with the Federal Reserve, the central bank of the United States. While the Federal Reserve operates independently, government fiscal policies, such as taxation and spending, can impact economic conditions and inflation, which the Fed considers when setting interest rates and controlling money supply. Additionally, government appointments to the Federal Reserve Board can shape the direction of monetary policy. Overall, the interaction between fiscal and monetary policies plays a crucial role in managing the economy.


How does inflation affect investment?

The inflation affects the investment indirectly when read with the return. Example if an investment provides a return of 6%, and the inflation during the same period is 5%, the investment in real terms increases only by 1% and not by 6%, as inflation eats away returns to the tune of 5%.


What does GDP affect?

GDP is a measure, a better question is what affects GDP. GDP is, specifically a measure of a country's production. A higher GDP signals growth, efficient production, it may affect policy decisions, it may affect Federal Reserve decisions (money supply and interest rate, target inflation rate etc.)

Related Questions

What are three ways the federal reserve can affect the money supply?

It can put a reccesion or inflation.


What industry did the federal act mainly affect?

The Federal Reserve Act mainly affected the banking industry.


How would the inflation rate affect the hotel and restaurant industry in the Philippines?

The behavior (rise or fall) of the inflation rate directly affects consumer spending, and indirectly the hotel and restaurant industry.


How does inflation affect investment?

The inflation affects the investment indirectly when read with the return. Example if an investment provides a return of 6%, and the inflation during the same period is 5%, the investment in real terms increases only by 1% and not by 6%, as inflation eats away returns to the tune of 5%.


What does GDP affect?

GDP is a measure, a better question is what affects GDP. GDP is, specifically a measure of a country's production. A higher GDP signals growth, efficient production, it may affect policy decisions, it may affect Federal Reserve decisions (money supply and interest rate, target inflation rate etc.)


How does the federal reserve reducing the interest rate affect the bond market?

The cost of borrowing money.^%


What industry did the federal reserve act mainly affect-?

The Federal Reserve Act mainly affected the banking industry.


What industry did the federal reserve act 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.


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.


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.


What industry did federal Reserve act 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.


How did the new federal reserve system affect banks?

it created 12 new banks giving them banking power