Money Supply and Economic Impact

The Federal Reserve is responsible for controlling the money supply in the United States.

Interest rates rise when the Federal Reserve limits the money supply.

Limiting the money supply can slow down inflation but may also lead to slower economic growth and increased unemployment.

<p>Limiting the money supply can help slow down inflation.</p> Signup and view all the answers

<p>There is a delicate balance because limiting the money supply can have both positive and negative effects on the economy.</p> Signup and view all the answers