Answer :
A decrease in the Z factors shifts the Fed rule to the right according to Fed rule/IS curve graph.
What role does the Fed have in the economy?
The Federal Reserve evaluates financial system risks and participate actively at home and abroad to ensure that the banking system supports a thriving economy for American people, groups, & enterprises. It is in charge of regulating the financial system and monetary policy. It does this through setting interest rates, which have an impact on the quantity of money accessible to the economy,
Why is Fed necessary?
To protect consumer credit rights and to ensure the security and soundness of the country's banking and financial system, supervision and regulation of banks and other significant financial institutions is necessary. preserving the financial system's stability and minimizing systemic risk
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