Answer:
D. It gives banks more money to lend to customers.
Explanation:
The amount of money in circulation is managed by the nation's monetary policy, which also aims to promote economic growth.
Option D is correct: It gives banks more money to lend to customers.
What does monetary policy aim to achieve?
Monetary policy, an economic metric, regulates the quantity and pace of growth of the money supply in an economy.
It is a powerful tool for managing macroeconomic issues like inflation and unemployment.
The aims of monetary policy include achieving the highest level of employment, stable prices, and moderate long-term interest rates.
Through the use of efficient monetary policy, the Fed can maintain stable prices, provide the conditions for long-term economic growth, and achieve maximum employment.
The Fed is specifically responsible for carrying out the nation's monetary policy in order to attain the goals of maximum employment, price stability, and reasonable long-term interest rates.
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