The Federal Reserve (the Fed) is constantly monitoring the U.S. economy and conducting transactions in the open market, but what exactly is the Fed trying to accomplish? O A. Low prices 151. When the U.S. dollar is strong, it enables U.S. consumers to import less expensive goods from other countries. More people have jobs, American businesses are able to produce and sell more and the average quality of life for U.S. citizens tends to increase. Maintain high employment. The Congress has directed the Federal Reserve to use True The Federal Reserve's most-used policy tool is open market operations, which control short-term interest rates. Which one of the following is not one of the monetary policy goals of the Fed?
"if this was the only policy tool that could be used to reduce aggregate demand and the inflation ratecan be connected to the slowing rate of economic growth because it is a contractionary policyIn terms of the economy, "just as the party gets going" refers to a situation in which real GDP ______________ potential GDP, which will result in _____________ the inflation rate.If the Fed itself admits that there are many obstacles in the way of effective monetary policy, why does it still engage in active monetary policy rather than use a monetary growth rule, as suggested by Milton Friedman and his followers?although it is not perfect, active monetary policy is still a stabilizing force in the economyWhich of the following is NOT an issue with using active monetary policy to reduce business cycles?c. The country also has struggled with persistently high inflation, which has forced its central bank to raise interest rates. The Federal Reserve is actively monitoring prices so it can step in and fight inflation whenever it poses a threat.The Federal Reserve wants to see full employment in the United States.
real GDP and employment changes from monetary policy actions can move in a countercyclical mannerit is a rule that links the Fed's target for the the federal funds rate to the current inflation rate, real equilibrium federal funds rate, inflation gap and output gapthe Taylor rule is used to analyze and predict how the Fed targets the federal funds rateWhat two institutions did congress create in order to increase the availability of mortgages in a secondary market?changes in government spending and taxes to achieve macroeconomic policy objectivesThe federal government increases spending on rebuilding the New Jersey shore following a hurricane.The total the federal government pays out for unemployment insurance decreases during an expansion.The revenue the federal government collects from the individual income tax declines during a recession. The objectives of monetary policy should be stated clearly and communicated to the public. The Federal Reserve works to promote a strong U.S. economy. In the long run, most economists believe that a permanent increase in government purchases will result in complete crowding out of private expenditures.How might an expansionary monetary policy affect the extent of crowding out in the short run?an expansionary monetary policy would decrease interest rates and thus reduce the extent of crowding outThe term "crowding out" refers to a situation where:government spending increases interest rates and decreases private investmentWhy might increasing taxes as a fiscal policy be a more difficult policy than the use of monetary policy to slow down an economy experiencing inflation?the legislative process experiences longer days than monetary policy Monetary policy has its benefits and setbacks, thus, it is important for people to understand what it is and its implications in daily living and the economy. One of the Fed’s major concerns—especially as of late—is maintaining the stability of the financial system.
The objectives as mandated by the Congress in the Federal Reserve Act are promoting (1) maximum employment, which means all Americans that want to work are gainfully employed, and (2) stable prices for the goods and services we all purchase. If you don’t agree with our Privacy Policy then you shouldn’t use our services.Security cookies should be enabled at all times so that we can secure our website and protect our services. We’ve all heard the stories about how gasoline used to be 10 cents per gallon, stamps cost a penny and you could buy a home for $15,000. Which of the following best explains how the Fed acts to help prevent banking panics? What are the Federal Reserve's objectives in conducting monetary policy?
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which one of the following is not one of the monetary policy goals of the fed?