Question

Which of these actions of the Federal Reserve can slow economic growth?

A) The Federal Reserve regulates the amount of money that flows into and out of the nation’s economy.
B) The Federal Reserve buys securities, which puts money back into the hands of people who can spend it in the marketplace.
C) The Federal Reserve decreases the reserve requirement and banks have more money to loan to people who want to borrow it.
D) The Federal Reserve increases the discount rate, which causes interest rates to rise and people to save rather than to spend.

Answer 1

it is D you guys

Step-by-step explanation:

Answer 2

D) The Federal Reserve increases the discount rate, which causes interest rates to rise and people to save rather than to spend. This action by the Federal Reserve slows the economic growth.

Explanation:

The Federal Reserve is the “central bank" of the United States of America. The Federal Reserve System is responsible for the money supply. The federal government follows Fiscal Policy to control recessions and encourage economic activity.

The Federal Reserve System expands or contracts the money supply based on monetary policy. The spending of consumers is automatically reduced, when the government increases the taxes on the product. This led to increase in saving the money rather than spending.