Question

conomics FWISD
Increasing the Money Supply
Choose the best word or phrase from each drop-down menu.
The Federal Reserve increases the money supply when it is trying to encourage the economy to _____
Consumers are more willing to spend using credit when the money supply is higher because interest rates are
______
One major positive effect of increasing the money supply is
in the unemployment rate___

Answer 1

Answer:

grow

lower

a decrease

Explanation:

Answer 2

Increased of money supply will encourage the economy to grow. Consumer will spend more because interest rate is low, the positive effect is unemployment rate will be low

What is Money Supply?

In Economics, money supply is defined as the capacity of cash in the position of people in the society at any point in time.

In other word, it's the volume of money in circulation.

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