Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.
Sagot :
To keep high inflation from eroding the value of money, monetary authorities in the united states control the supply of money in the economy.
What is supply of money?
The money supply in macroeconomics refers to the total volume of currency owned by the public at a certain point in time. There are various ways to describe "money," but the most common are currency in circulation and demand deposits.
The Fed can expand the money supply by decreasing bank reserve requirements, allowing banks to lend more money. In contrast, by increasing bank reserve requirements, the Fed can reduce the quantity of the money supply.
Our country's current monetary policy is expansionary, which implies that the money supply is artificially increased and interest rates are near zero. As a result, the growth rate of all dollars in circulation ("M2 Money Supply") reached a new high of 27% in 2020-2021.
To know more about supply of money follow the link:
https://brainly.com/question/3625390
#SPJ4
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.
