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Why does the federal reserve choose to increase the money supply?

User Ernesto U
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1 Answer

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To control the supply of money to help stabilize the economy

Step-by-step explanation:

An increase in the supply of money works both through lowering interest rates, which spurs investment, and through putting more money in the hands of consumers, making them feel wealthier, and this stimulates spending.

User Phaas
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