Homework answers / question archive / The change in the money supply affects economic agents

The change in the money supply affects economic agents

Economics

Share With

The change in the money supply affects economic agents. Suppose the Federal Reserve increases the money supply to boost aggregate demand during recessionary pressure.

a. How does the increase in the money supply affect consumer spending and investment?

b. How does it affect the firm or organization you work for?

c. How do the Federal Reserve policies affect us as individuals (households)?