what is one way the federal reserve system helps promote stability in the u.s. economy?\na by raising and…

what is one way the federal reserve system helps promote stability in the u.s. economy?\na by raising and lowering income tax rates\nb by lending money to first - time homebuyers\nc by setting up job training programs for unemployed workers\nd by increasing or decreasing the amount of money in circulation

what is one way the federal reserve system helps promote stability in the u.s. economy?\na by raising and lowering income tax rates\nb by lending money to first - time homebuyers\nc by setting up job training programs for unemployed workers\nd by increasing or decreasing the amount of money in circulation

Answer

Brief Explanations:

The Federal Reserve uses monetary - policy tools like open - market operations to control the money supply. Raising or lowering income tax rates is a fiscal policy action (done by the government, not the Fed). Lending to first - time homebuyers and setting up job training programs are not primary functions of the Fed. The Fed can increase or decrease the money in circulation to manage inflation and economic growth, promoting stability.

Answer:

D. by increasing or decreasing the amount of money in circulation