Question

Which best describes one of the ways in which the Federal Reserve has an impact on the national economy?

The Federal Reserve helps the economy by keeping inflation low in times of economic growth.
The Federal Reserve keeps interest rates low, discouraging loans, to prevent the economy from growing too fast.
The Federal Reserve issues securities, which takes money out of circulation, slowing economic growth.
The Federal Reserve collects income taxes, which hurts the national economy by taking money out of circulation.

Answer 1

Am I right with B?

Answer 2

i dont rlly think its B its either C or D

Answer 3

@extrinix

Answer 4

I dont think its B beacuse it says nothing abt it keeping intrest rates low so c or d

Answer 5

When economy growth is stagnant and job growth is low, the federal reserve lowers the interest rates to encourage people to apply for loans and spend their loans on businesses or other ventures. Thus, spurring economic growth.

Answer 6

Is that statement true for B?

Answer 7

You are correct with answer choice B. " The Federal Reserve keeps interest rates low, discouraging loans, to prevent the economy from growing too fast."

You can eliminate C and D because The federal reserve wouldn't do anything to hurt the national economy.

And A is also eliminated because "When inflation is too low, the Federal Reserve typically lowers interest rates to stimulate the economy and move inflation higher."

Which explains why your answer would be B.

Which also means your statement is accurate.

Answer 8

Thank you so much

Answer 9

You're Welcome xd