The Fed influences the nation's output by manipulating the money supply.

Question

Quizplus · Accepted Answer

The Federal Reserve (the Fed) can influence the nation's output by manipulating the money supply through its monetary policy tools, such as adjusting interest rates and purchasing or selling government securities. By increasing or decreasing the money supply, the Fed can affect consumer and business spending and investment, which can impact overall economic growth and output.

The Fed Influences the Nation's Output by Manipulating the Money