Ask Question
19 May, 21:53

The chair of the Federal Reserve Bank spoke to the American public. The message she conveyed is that Fed economists are worried about inflation and believe the best course of action would be to slow the economy. Which of the following policies is the Fed most likely to pursue?

+3
Answers (1)
  1. 20 May, 00:26
    0
    contractionary monetary policy

    Explanation:

    When the Fed engages in a contractionary monetary policy, it will raise the interest rates of US securities and decrease the money supply. When the Fed increases the interest rate of US securities it will sell more securities, and that way it will absorb money from the economy. As interest rates increase, the economy cools down.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The chair of the Federal Reserve Bank spoke to the American public. The message she conveyed is that Fed economists are worried about ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers