(plz ) 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 to reduce the money supply in the economy

This means that when there's a danger of inflation, that is of a high supply of money that is unnecessary, they increase the reserve and  this reduces the amount of money on the market, which prevents the inflation. It also works the other way around, if there's not enough money they help by decreasing the reserve.

Using monetary policy, the Federal Reserve increases to reduce the money supply in the economy .

Explanation:

Central banks use different techniques, described monetary policy, to improve or reduce the volume of money in the economy. The Fed can raise the money flow by reducing the resources demands for banks, which enables them to grant more capital.Conversely, by increasing the banks' reserve claims, the Fed can reduce the volume of the money amount.

The changes to agriculture in the united states since 1900 is that increased mechanization has increased food production, thereby increasing the need for labor. there has been an increased need for higher speeds of food production due the fact that the population in the united states continues to rise.