When the Fed increases the interest rate it charges to member banks, those banks "raise the interest rate" they charge their customers. This "decreases the amount of money" that is available for people to spend.
These are questions that the above text answers:
1. What happens when the Federal Reserve increases the interest rate it charges to member banks?
2. How do banks respond when the Federal Reserve raises the interest rate?
3. What effect does an increase in the interest rate have on the amount of money available for people to spend?
4. What is the relationship between the Federal Reserve's interest rate and the interest rate charged by member banks?
5. How does an increase in the interest rate impact people's ability to spend money?
6. What happens to the amount of money available for spending when the interest rate is raised?
7. How does the interest rate charged by banks affect the availability of money for spending?
8. What is the impact of an increase in the interest rate on people's spending habits?
9. How does the Federal Reserve's interest rate affect the spending behavior of individuals?