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The Fed Can Influence the Money Supply by Changing the Interest

question 168

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The Fed can influence the money supply by changing the interest rate it pays banks on the reserves they are holding.


Definitions:

Knowledge

The understanding, awareness, or familiarity gained through experience or education by perceiving, discovering, or learning.

Science

The disciplined pursuit of knowledge, understanding, and truth through experimental observation, empirical evidence, and theoretical explanation.

Experience

Practical interaction with the world and the knowledge we gain through it. Today the term science tends to be limited to those questions that can and must be answered by reference to experience and extrapolations from experience.

Extrapolations

Predictions or inferences about unknown data made based on known or observed information.

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