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If the Fed wanted to expand the money supply as part of an antirecession strategy, it could decreased investment brought on by an increase in borrowing rates.
The total amount of money in circulation, which includes banknotes, coins, and account balances, is referred to as the "money supply." Most people think of the money supply as a group of safe assets that people, companies, and governments can use to make payments or keep as short-term investments.
The Federal Reserve, the nation's central bank, is in charge of maintaining the nation's flexible, reliable, and stable monetary and financial system.The Fed might reduce investment by raising borrowing rates if it wished to raise the money supply as part of an anti-recession policy.
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