How does the federal reserve reduce the money supply in the economy? using monetary policy, the federal reserve increases to reduce the money supply in the economy.

The correct answer is: "Using monetary policy, the Federal Reserve increases the interest rate to reduce the money supply in the economy".

The interest rate is the price charged by financial institutions for borrowed funds. If such price increases, the amount of borrowed funds that investors are willing to demand decreases (inverse relationship of price and quantity demanded). Therefore, such adverse conditions, restrict the amount of money in circulation in the economy, the so-called money supply.

the answer is: c. c.it limited the president’s power to start wars.

the war powers resolution of 1973 requires the president to notify the congress whenever the president wanted to order a military operation to other countries within 48 hours. if after being reviewed the congress disagree with the proposal, that the president will be banned from ordering the operation.