"GOVERNMENT PRINTS MONEY." The Federal Government and the Federal Reserve are two different entities. Factors are...

"GOVERNMENT PRINTS MONEY." The Federal Government and the Federal Reserve are two different entities. Factors are the only ways the Federal Government can obtain a dollar to spend and who actually issues the currency that is used. another factor is who determines how much currency is in circulation and who determines it.

Explain that.

Solutions

Expert Solution

The main function of the central bank of the countries is to print money and controlling the supply of the money. The supply of money in economy regulated by the Federal Reserve through monetary policy.

The monetary policy of the Federal Reserve divide into through

Expansionary Monetary policy supply of money increased through this type of monetary policy
Contractionary Monetary Policy supply of money reduced through this policy.

Thus, the money supply in the economy regulated by the central bank.

Rahul Sunny answered 1 year ago

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