One popular method of controlling inflation is through a contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates.
Q. When inflation is the Fed aims to slow the?
It decreases the money supply. When inflation is , the Fed aims to slow the economy.
Table of Contents
- Q. When inflation is the Fed aims to slow the?
- Q. What does the Fed do when inflation rises?
- Q. Which best describes how the Fed responds to recessions?
- Q. What is the primary action taken by the federal government when inflation is widespread in the American economy?
- Q. Which of the following is not a goal of federal economic policy?
- Q. What is main objective of government?
- Q. What are the three objectives of a government?
- Q. Which is not the economic goal of the firm?
- Q. What is the economic goal of the firm?
- Q. What is the main goal of a firm?
Q. What does the Fed do when inflation rises?
When inflation is too high, the Federal Reserve typically raises interest rates to slow the economy and bring inflation down. When inflation is too low, the Federal Reserve typically lowers interest rates to stimulate the economy and move inflation higher.
Q. Which best describes how the Fed responds to recessions?
The correct answer is it buys more securities. The Fed(Federal Reserve) responds to recessions are the Federal Reserve Banks lower interest rates and provide bank liquidity at the same time.
Q. What is the primary action taken by the federal government when inflation is widespread in the American economy?
What is the primary action taken by the federal government when inflation is wide-spread in the American economy? The federal government uses its taxing and spending policies to regulate the American economy.
Q. Which of the following is not a goal of federal economic policy?
From all those aforementioned, the one which is not a goal of federal economic policy is The Federal Reserve.
Q. What is main objective of government?
The main government aims for the economy are full employment, price stability, economic growth, redistribution of income and stability of balance of payments. A government can operate a range of policy measures to achieve these aims and it is judged on their success or otherwise.
Q. What are the three objectives of a government?
To maintain a strong economy, the federal government seeks to accomplish three policy goals: stable prices, full employment, and economic growth. In addition to these three policy goals, the federal government has other objectives to maintain sound economic policy.
Q. Which is not the economic goal of the firm?
Answer. Fair remuneration to employees and Planting trees at the roadside are not economic objectives of a business.
Q. What is the economic goal of the firm?
6 Economic Goal of the Firm Primary objective of the firm (to economists) is to maximize profits. Profit maximization hypothesis Other goals include market share, revenue growth, and shareholder value Optimal decision is the one that brings the firm closest to its goal.
Q. What is the main goal of a firm?
The Goals of a Business. The primary purpose of a business is to maximize profits for its owners or stakeholders while maintaining corporate social responsibility.
