Federal reserve banks directly affect the national economy by

Hi. I'm not sure if there should be choices in your item. In case there is none, here is my answer. The Federal Reserve Banks directly affect the national economy by raising and lowering the interest rates. Businesses can take advantage of the lower interest rates that can encourage them to borrow large amounts for their purpose of either expanding or improving their businesses.

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Explanation:

circular flow model. A simple economic model illustrating the flow of goods and services though the economy. In the model, producers are termed as "firms" while consumers are referred to as "households." Firms supply goods and services while households consume these goods and services.