question archive The Fed has indirect control over interest rates

The Fed has indirect control over interest rates

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The Fed has indirect control over interest rates. This will have an influence on which of the following items: Business expansion Tax laws Consumer spending Government policy

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The Federal Reserve have indirect control over the interest rate and it will have influence on-

(A) Business expansion- it will impact The Business expansion as interested change will impact the loan availability.

(C) Consumer spending- The changes in the interest rates will be having an impact on the consumer spending as it will impact the disposable income.

All the other statements are related to fiscal policy.

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