Select all that apply The Fed has indirect control over interest rates. The Fed attempts to make adequate funds available for which of the following? \( \square \) Tax laws created by the Fed \( \square \) Consumer spending Business growth
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The Federal Reserve, often simply referred to as "the Fed," aims to manage the economy by influencing interest rates and ensuring adequate liquidity in the market. One of its key objectives is to support consumer spending, as increased consumer spending stimulates economic growth and helps maintain employment levels. When people are confidently spending money, it can lead to a cycle of increased business revenue and investment. Additionally, the Fed also focuses on promoting business growth. By adjusting interest rates, the Fed makes borrowing cheaper or more expensive, impacting how businesses invest and expand. A lower interest rate typically encourages businesses to take out loans for capital investments, ultimately benefiting the economy as a whole.