Money Supply and Economic Impact
5 Questions
2 Views

Money Supply and Economic Impact

Created by
@OrderlyTsilaisite

Questions and Answers

What is the role of the Federal Reserve in managing the money supply in America?

The Federal Reserve is responsible for managing the money supply in America.

What happens to interest rates when the Fed limits the money supply?

Interest rates rise when the Fed limits the money supply.

How does limiting the money supply affect borrowing costs?

Limiting the money supply leads to higher borrowing costs.

What is the intended effect of limiting the money supply?

<p>The intended effect of limiting the money supply is to slow down inflation.</p> Signup and view all the answers

What is the risk associated with limiting the money supply?

<p>The risk associated with limiting the money supply is that it may slow economic growth too much, leading to more unemployment.</p> Signup and view all the answers

More Quizzes Like This

Macroeconomics Quiz
6 questions

Macroeconomics Quiz

HeavenlyChrysocolla avatar
HeavenlyChrysocolla
Money Supply and Economic Impact
5 questions
What is Money in Economics?
10 questions
Macroeconomics Quiz
30 questions
Use Quizgecko on...
Browser
Browser