other than raising and lowering the interest rate, how does the federal government increase the money supply?
367202
First the Fed doesn't print money.  That's done by the Treasurey.  And what the hell is the "golf" standard?\nAnyway.  There a three ways the Fed can control the money supply: \n1)Open Market Operations\n2)Discount Window(rate)\n3)Legal Reserve Requirement
524201
1/ First of you have to note the diferences. Fiscal policy is changes in tax rates to increase spending by funding govt. activites whereas a monetary policy is about changes in interest rates to improve circulation of money i.e. demand and supply. Both stimulate the economy by increasing/decreasing supply and demand of money through spending whether it is consumer spending or govt. spending.\n\n2/  What are some pros/cons of increasing/reducing taxes to increase spending. When would you use fiscal policy to increase spending and who is affected?...In this case it is the govt.\n\n3/  What are some pros/cons of increasing/reducing interest rates to stimulate spending. When would you use monetary policy to increase spending and who is affected?...In this case it is consumers..\n\nHope that helps with your paper.
165677
In a recessionary type environment, expansionary fiscal policy can promote employment by increasing demand for goods and services. This occurs when a rise in consumption happens from things like a lowering of taxes giving consumers more free money to spend.\nThe government will borrow more money which will make interest rates rise. This will attract foreign investors which in turn will bring the value of the dollar up. If the dollar is worth more, then imports will be cheaper (while exports will be more expensive to the recipients).
479833
The Fed is still raising rates.  The country is at war (always creates inflation).  Unemployment is low and the economy is booming.\n\nRates will go up.
10242
If more money is printed, inflation increases. An extreme example is pre-WWII Germany, where the Mark fell from 4.2 to the dollar to 1,000,000 to the dollar in August 1923 and 4,200,000,000,000 November 20th. The only way to fulfill the needs of everyone would be to equalize the amount of money that people have. As long as some have more than others, some people will not be able to buy what they need.
226795
Well, The Federal Reserve Bank regulate the monetary policy and they also change the interest rate of our economy.
504383
Decreasing interest rates can actually spur inflation rather than curb it. That is why the Fed keeps raising interest rates.
972811
this is tricky it is the federal bank, but they can only print money if the congress ask them to.  in simple terms the congress bowers 1 billion. the feds keep a log and then print the money.  and give it to the congress which in tern gives to the people they owe.  \nnow here is where it gets tricky. \njoe somebody goes up for a bank loan.  the bank ask him for all his information.  the bank decides to give a loan out to joe somebody. \nnow pay attention here\nthe bank ask the feds or commercial bank or world bank or a really big bank for a loan.  The big bank says I will loan you 100 dollers for every two dollers of a monthly average of the total balance in your accounts.  so the bank totals all their custermers accounts say it adds up to 2 billion they can get a loan of 100 billion at a fix rate of about 3.75 percent (as of today the fed rate changes now and then)  then the bank gives the money to joe somebody.  and collects anywhere from 6.5 - 22 percent.\n\n\nNow when the congress ask the fed for money the inflation goes up to a ratio of the amount of money they ask for and how much money is in circlation.  \n\nat that is where U.S. money comes from world money is simular.\n\nhope this helps\n\n-David-
1116586
If higher interest rates contribute to inflation then the Federal Reserve so have it wrong!!\n\nMost inflation is believed to come from an over active economy with too much money chasing too few goods. By  raising the cost of borrowing money, it reduces the amount of money people have to spend on more stuff. That slows down the economy. \n\nMost businesses don't rely on borrowed money to stay in business. They typically used borrowed money to expand their business or acquire other businesses.
678714
The Fed actually sets a target rate, the open market dictates the "true" rate, but it is usually very close to the target rate.  The Fed Funds rate is the rate banks pay each other when they borrow excess capital to meet reserve requirements, or to invest.  Basically, when rates go up, the people who get that interest are lenders, and they are usually banks.
512455
The government has many forms of taxes. The higher prices increase government tax income. This is a cash cow for the government.
43552
First, The Fed doesn't raise prime rates.  The Fed raised the Fed funds rate and the discount rate today.  These are the rates that banks can borrow money from the Fed.  In turn, the banks raise their prime rates ( the rates charged for the bank's best customers).  \n\nMost smaller banks will raise their cd rates immediately or within within a few days of a Fed rate hike.  The larger banks tend to lag a little, but they also have to move them quickly in order to stay competitive.
269948
The Federal Reserve Interest Rate is a short term overnight rate which the FED bank charge other bank to borrow funds at.  Sometime you can get rate better than the FED rate if you borrow from a Credit Union or go some long term private channel.  However since the FED rate is the cost of money for the banks in the short term, the bank usually tack on an additional surcharge to make a profit in making you a loan.  So in a sense the FED rate is a measuring stick by which banks use to give you a loan.  Ultimately the FED government set the amount of money in circulation so Uncle Sam decides our interest payment.
1058533
from what  know the government of India sets interest rates with the Indian central bank. The central bank of India like most Asian central banks is able to compel banks to change their rates similar to what we used to have in Australia.if they are floating the rupee then the indian central bank will probably use open market operations to manipulate the interest rate. ie they will sell bonds on the market to dry up liquidity and put interest rates up or they buy bonds to increase liquidity and reduce interest rates.
622813
The government wanted more money. They found a way to get it.
868672
raise interest rates.
307163
I doubt it, they raise it when your income rises.  They would have more to distribute to your kids if they got a lump some, because the interest would grow huge i would think.