Kaylalouis12 Kaylalouis12
  • 03-04-2020
  • Social Studies
contestada

the Federal Reserve was trying to control inflation what would they do with the interest reserves

Respuesta :

anderam5
anderam5 anderam5
  • 16-04-2020

Answer:

When the Federal Reserve increases its interest rate, banks then have no choice but to increase their rates as well. When banks increase their rates, fewer people want to borrow money because it costs more to do so while that money accrues at a higher interest. So spending drops, prices drop and inflation slows

Explanation:

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