the federal reserve has a number of way to influence the supply of money. The federal reserve can influence the interest rate that people pay on their loan regardless of what bank they are using. How might the fed adjust the interest rate if it wanted to increase the amount of money in circulation?
a.decrease the interest rate people would be less likely to take out loans
b.increase the interest rate people would be more likely to take out loans
c.increase the interest rate people would less likely to take out loans
d.decrease the interest rate people would be more likely to take out loan

Question

the federal reserve has a number of way to influence the supply of money. The federal reserve can influence the interest rate that people pay on their loan regardless of what bank they are using. How might the fed adjust the interest rate if it wanted to increase the amount of money in circulation?
a.decrease the interest rate people would be less likely to take out loans
b.increase the interest rate people would be more likely to take out loans
c.increase the interest rate people would less likely to take out loans
d.decrease the interest rate people would be more likely to take out loan

anonymous · Answer

please help

anonymous · Answer

D. This is what happened following the sub-prime mortgage crises of 2008.