The Federal Reserve System uses monetary tools to regulate the nations money supply and moderate the effects of expansion and contraction in the economy. Part A: What action would the Federal Reserve take if it wanted to reduce the money supply?

Decrease the interest rate

Explanation:

just took quiz

the correct answer is “opportunity cost”. opportunity cost is what a company misses out because it decided in one option over another one. in this case, the company decided to invest in building a factory so it gave up another possible benefit or profit in order to achieve success with the factory.  

trade-off is not the correct answer since it is a situation in which you accept losing something in return for benefits in other areas.

and finally, consequence is a general term used to accept what it comes when you make a decision. it can be a positive or negative consequence depending if the decision you took was the correct one.  

honestly you should get that checked out because it really isn't normal