Drag each tle to the correct bax.
The banking system and the government can affect the nation's money supply by taking certain actions. Which effect results from each action?
People find it easier
to borrow and spend.
People find it harder
to borrow and spend.
People spend less,
so the economy slows.
The Federal Reserve
lowers interest rates.
Congress lowers
tax rates.
The Federal Reserve
raises interest rates.
Congress raises taxes.
People spend more,
so the economy grows.