hernandezyosselin94 hernandezyosselin94
  • 11-12-2020
  • Social Studies
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How does the Federal Reserve affect me, U.S. banks, and the economy?

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sarahreeves1
sarahreeves1 sarahreeves1
  • 11-12-2020

Answer:

The Fed uses the federal funds target rate as a means to influence economic growth. To stimulate the economy, the Fed lowers the target rate. ... Since loans are harder to get and more expensive, consumers and businesses are less likely to borrow, which slows economic growth and reels in inflation.

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