laniyaessiewilosh1z5 laniyaessiewilosh1z5
  • 26-02-2021
  • Social Studies
contestada

7. By what action does the Federal Reserve try to control inflation?
a. Raise taxes
b. Decrease the reserve ratio
c. Lower interest rates
d. Congressional approval

Respuesta :

tanyasanchez
tanyasanchez tanyasanchez
  • 26-02-2021

Answer:

The primary job of the Federal Reserve is to control inflation while avoiding a recession. It does this with monetary policy. To control inflation, the Fed must use contractionary monetary policy to slow economic growth. The ideal economic growth rate is between 2%-3%.

Explanation:

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