dorisnolasco31
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In this scenario, what is the Fed trying to do by
increasing interest rates? Check all that apply.
-decrease the amount of money that banks have to
lend
-increase the money supply for banks
-reduce the amount of available credit
-discourage consumer borrowing by increasing
interest rates on loans
-encourage banks to loan more money

Answer :

Answer:

Explanation:

Decrease the amount of money that banks ....

Reduce the amount .....

Discourage consumer borrowing.....

Interest rates are generally low when the economy is growing while inflation is rising. Whenever interest rates increase, the economy is slowing, and inflationary falls. Rates of interest with inflation expectations seem to provide an inverse connection.

  • Throughout this scenario, it Fed is striving to achieve its objectives through raising interest rates.
  • Reduce the quantity of money available for lending by banks.
  • lower the amount of credit available.
  • Increased interest rates on loans discourage customer borrowing.

Therefore, the answer is "First, third, and fourth".

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