... 66 PRINCIPLES OF ECONOMICS Depository institutions (commercial banks, savings and loan associ-ations, and credit unions) borrow savers’ money balances and lend themto individuals, businesses, ... administration agree on 60 PRINCIPLES OF ECONOMICS Figure 6- 2 68 PRINCIPLES OF ECONOMICS Federal Reserve SystemThe Federal Reserve System manages the U .S. money supply in order tominimize inflationary ... its net tax revenues and/ or spending. Fiscal policy, however,is not as easily implemented or as successful as first suggested. Supposea recessionary gap exists. Will Congress and the administration...