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4y ago

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Relationship between increases and decreases in employment consumer spending and money supply?

Typically, a decrease in employment rates leads to fewer disposable income, and less spending. When the employment rates are high, consumers tend to spend more.


How does the federal reserve influence local economics?

The Federal Reserve impacts local economics by impacting local loan rates. The overall movement of rates increases or decreases disposable income and the resultant spending.


When the federal reserve decreases the money supply it generally does by selling bonds true or false?

It is true that when the Federal Reserve decreases the money supply it generally does by selling bonds. When the Federal Reserve sells bonds it pushes prices down and increases rates.


How birth rates and death rates influence the size of a population?

If birth rates exceed death rates, the population increases proportionally. If death rates exceed birth rates, the population decreases.


What impact do changes in interest rates have on the money supply?

Changes in interest rates can affect the money supply by influencing borrowing and spending behavior. When interest rates are low, borrowing becomes cheaper, leading to increased spending and investment, which can expand the money supply. Conversely, higher interest rates can discourage borrowing and spending, potentially reducing the money supply.


What does fiscal policy involve?

spending levels and tax rates to monitor and influence a nation's economy


What is call when the birthrates are less than the death rates?

Population decreases


What does crowding out mean?

Increased government spending results in higher interest rates which puts downward pressure on investment spending.


Is a reduction in interest rates likely to affect spending on pizza?

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When does the government maintain spending and taxes at their current rates?

when economy is stable


Why would the Fed decrease money supply?

If the Fed wants to slow the rate of consumer and investor spending, it would restrain the growth of money and credit. The decrease in money available in the economy leads to a decrease in investment and spending as the availability of capital decreases and it becomes more expensive to obtain. This limiting of access to capital slows down economic growth as investment decreases.


Low interest rates do not attract customers?

false