Question

PLEASE RESPOND.

You are worried that the economy is facing a downturn. What actions can you take using the Federal Reserve?


I'm not sure what to say. Could someone throw some suggestions on how people can use the Federal Reserve to help the economy? I don't really know.

Answer 1

@phi @ajprincess @Zale101 any ideas? I honestly don't actually know what the federal reserve is or what it's about.

Answer 2

@hartnn @nincompoop ??

Answer 3

i would help but i am so bad at this kind of think good luck

Answer 4

The federal government could reduce the Fed rate, if it's not at 0% already or lower the required reserve ratio, which would tend to increase the money supply. That's monetary policy, I believe. It would tend to put more money in circulation.

Answer 5

The federal government could also cut taxes or increase federal spending to give US manufacturers something to do, and increase employment. There is a tension between those two techniques.

Answer 6

Need some more suggestions?

Answer 7

I'm sorry I ran to do something :/ I'm gonna read your suggestions now

Answer 8

@SolidIceCream Are these actions that I could take though? Or things the government can do?

Answer 9

Those are things the government could do.

Answer 10

Oh well that's the problem I have to say things that I can do @SolidIceCream

Answer 11

And I don't know any

Answer 12

Oh ok no problem!

Answer 13

thanks

Answer 14

Ok you could go to the US Treasury and ask him, because according to the cartoons on PBS, the Treasury is a person, and ask him to stamp out two, one trillion dollar coins and deposit them in the Federal Reserve. Then we would have no more National Crysis.