58.3k views
0 votes
The federal reserve increase the money supply when it is trying to encourage the economy to

User Zbyszek
by
3.9k points

2 Answers

1 vote

Answer:

Grow

Step-by-step explanation:

If the Federal Reserve increased the money supply then interest rates would be lowered and you would see a growth in the country GDP (gross domestic product). This would be called an Expansionary Monetary Policy.

User PrinceZee
by
4.0k points
6 votes

Answer:

grow, lower, a decrease,

User Lampbob
by
4.4k points