If the fed engages in open market sales in direct response to an increase in the rate of inflation, this is known as

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Sullivan Barker

24 January, 01:17

If the fed engages in open market sales in direct response to an increase in the rate of inflation, this is known as

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Gunnar Mckenzie · Answer 1

If the fed engages in open market sales in direct response to an increase in the rate of inflation, this is known as active policy making.

active policy making refers to the policies created by the government specifically to tackle economic problems. The open market sales is used to take away money from the market and reduce the inflation rate