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30 July, 04:55

The federal reserve increase the money supply when it is trying to encourage the economy to

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Answers (2)
  1. 30 July, 05:57
    0
    grow, lower, a decrease,
  2. 30 July, 07:55
    0
    Grow

    Explanation:

    If the Federal Reserve increased the money supply then interest rates would be lowered and you would see a growth in the country GDP (gross domestic product). This would be called an Expansionary Monetary Policy.
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