Question

If the federal reserve wants to increase the equilibrium interest rate, it will _____ the _____ money. question 18 options: increase, demand for decrease, supply of increase, supply of decrease, demand for

Answer 1

If the federal reserve wants to increase the equilibrium interest rate, it will decrease the demand for money. Federal Reserve is the institution that is charged with determining the size of the monetary base and with regulating the banking system in the U.S.