Question
What methods could the Federal Reserve use to stabilize the economy?(1 point)
Responses
The Federal Reserve provides loans to banks that cannot obtain loans to prevent shortages in cash.
The Federal Reserve provides loans to banks that cannot obtain loans to prevent shortages in cash.
The Federal Reserve prevents banks from lending who do not have the reserves to lend.
The Federal Reserve prevents banks from lending who do not have the reserves to lend.
The Federal Reserve issues money to individuals to stimulate the economy.
The Federal Reserve issues money to individuals to stimulate the economy.
The Federal Reserve increases interest rates to incentivize banks to lend.
Responses
The Federal Reserve provides loans to banks that cannot obtain loans to prevent shortages in cash.
The Federal Reserve provides loans to banks that cannot obtain loans to prevent shortages in cash.
The Federal Reserve prevents banks from lending who do not have the reserves to lend.
The Federal Reserve prevents banks from lending who do not have the reserves to lend.
The Federal Reserve issues money to individuals to stimulate the economy.
The Federal Reserve issues money to individuals to stimulate the economy.
The Federal Reserve increases interest rates to incentivize banks to lend.
Answers
GPT 3.5
The Federal Reserve decreases interest rates to encourage borrowing and spending.