think about it, if the economy expanse, more money will be needed
The reserve requirement is 0.5. The Fed wants to increase the money supply by $1000.
One of the two (according to the Keynesian) reason that can create high inflation is attributed to the increased money supply where "too much money chasing too few goods" Therefore, to reduce inflation, the Federal reserve would want to DECREASE the money supply. However, the increase in money supply can create stimulus demand and depreciate the exchange rate of the US Dollars which are considered (although questionable) beneficial to the US economy.
it ould increase the supply of money
It would increase the supply of money.
it would increase the supply of money
The reserve requirement is 0.5. The Fed wants to increase the money supply by $1000.
increase
When there are liquidity problems and/or when they want to increase money supply.
think about it, if the economy expanse, more money will be needed
One of the two (according to the Keynesian) reason that can create high inflation is attributed to the increased money supply where "too much money chasing too few goods" Therefore, to reduce inflation, the Federal reserve would want to DECREASE the money supply. However, the increase in money supply can create stimulus demand and depreciate the exchange rate of the US Dollars which are considered (although questionable) beneficial to the US economy.
It would increase the supply of money.
it ould increase the supply of money
It would increase the supply of money.
It would increase the supply of money.
It would increase the supply of money.
It would increase the supply of money.
it would increase the supply of money