The Fed can _____ in the economy. ?

Name: The Fed can _____ in the economy. ?
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Question

The Fed can _____ in the economy. ?

Quizplus · Accepted Answer

The Fed can change both interest rates and the supply of money. It does this through various tools such as open market operations, discount rate changes, reserve requirement changes, and forward guidance. By changing interest rates, the Fed can influence borrowing, spending, and investment in the economy. By changing the supply of money, it can affect lending and liquidity in the banking system.

The Fed Can _____ in the Economy.