select the correct answer. what happened when the federal reserve limited the money supply? a. the slow…
select the correct answer. what happened when the federal reserve limited the money supply? a. the slow release of money kept the value of the us dollar high. b. the limited access to currency stifled business growth. c. the value of stocks slowly recovered with the tight - fisted policy. d. more money went into business rather than into the stock market.
Answer
Brief Explanations:
When the Federal Reserve limits the money supply, there is less currency available in the economy. This makes it harder for businesses to access funds for expansion and operations, thus stifling business growth. Option A is incorrect as limiting money - supply doesn't necessarily keep the dollar's value high in a straightforward way. Option C is wrong because tight - money policy usually doesn't lead to a slow recovery of stock values immediately. Option D is incorrect as a limited money supply affects both business and stock market access to funds negatively and doesn't cause a shift of money from stock market to business.
Answer:
B. The limited access to currency stifled business growth.