What happened when the federal reserve limited the money supply

Asked by maham237 @ 24/07/2021 in History viewed by 282 People

The slow release of money kept the value of the US dollar high.
The limited access to currency stifled business growth.
The value of stocks slowly recovered with the tight-fisted policy.
More money went into business rather than into the stock market.

Answered by maham237 @ 24/07/2021

The correct answer is: "The limited access to currency stifled business growth."

When the money supply is limited, there is scarcity in the money market and the interest rate (the price of money) rises. Therefore, through this price adjustment, equilibrum is reached in the market again.

High interest rates disincentivate investment because borrowing funds to finance new projects has become relatively more expensive. Therefore, businesses will not conduct expansion policies under this scenario.

Write two paragraphs to compare and contrast the narrators’ schools and explain how their schools shape their perspectives toward the hijab. cite evidence from the text to support your ideas.

Asked by evette57 @ 13/09/2022 in History viewed by 1683 persons

What happened when the federal reserve limited the money supply

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