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The Federal Reserve increases the money supply when it is trying to encourage the economy to

A. Grow
B. Shrink

2 Answers

1 vote

Answer: grow, lower, a decrease,

Step-by-step explanation:

User Akiko
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1 vote
economy to grow

It is called an expansionary fiscal policy. The government often reduce reduce taxation and buy off treasury bond to ensure that banks have more money to lend, and people have more money to invest.
User PRVS
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