![gjvyverman](/avatars/2248.jpg)
gjvyverman
11.12.2019 •
History
Which of these would the federal reserve consider doing if it wanted to attempt to keep inflation in control?
Solved
Show answers
More tips
- C Computers and Internet How to Get Rid of 3pic Infector: Everything You Need to Know...
- A Auto and Moto Experience the World of the Most Expensive Cars on the Planet...
- S Style and Beauty How to Get Rid of a Double Chin?...
- F Food and Cooking How to Cook Julienne? Recipes and Tips...
- D Dating, Love, Relationships 10 Useful Tips on How to Survive a Breakup?...
- F Food and Cooking Apple Cider Vinegar: The Ultimate Health and Beauty Solution...
- C Computers and Internet Е-head: How it Simplifies Life for Users?...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- F Family and Home Parquet or laminate, which is better?...
- L Leisure and Entertainment How to Properly Wind Fishing Line onto a Reel?...
Answers on questions: History
- H History How did the role of women during World War I affect the suffragist movement?...
- H History I need gf im single and 15 14 - 15...
- H History This excerpt describes an instance of deportation during the 1930 s as a part of a repatriation effort. Why did the Federal Government implement repatriation? A.To...
- H History How did the trans-Saharan caravan impact West African culture?...
- H History What was Cortes’ reward from King Charles I of Spain for his domination over the Aztecs?...
- H History I m hearing all the alarms ring-a-ling They go off every time that we re face to face Why is it so hard to resist? Temptation sweet as honey, I know it s too lateI...
- H History True/False: Write A if you believe the statement is correct and B if you believe the statement is incorrect. (36-44)...
- H History In which region on the map above did members of Oklahoma’s 45th Infantry Division, the Thunderbirds, participate in armed conflict during the Cold War?...
- H History He mildest winters and hottest summers were found in the new england, northern or southern colonies?...
- H History The lived predominantly on fish and other sea foods. A. Mound Builders B. Inuit C. Great Basin...
Ответ:
raise interest rates
Explanation:
Inflation is the continuous and widespread rise in the prices of goods and services in an economy. This is a monetary phenomenon, caused by the excess of currency in circulation in the economy. When demand is very hot and money circulates faster, prices tend to rise, causing inflation. Rising inflation decreases the purchasing power of money, as with each inflationary process, more money will be needed to buy the same good.
The agency responsible for controlling inflation is the Federal Reserve, which has monetary policy as a tool for inflationary containment. Anti-inflationary monetary policy can occur in two ways. The main one is the interest rate increase, which aims to discourage consumption and stimulate investments. When interest rates rise, economic agents have an incentive to save. As a result, consumption decreases and the inflation rate decreases. Another way to curb inflation is by reducing the amount of paper money in circulation. This is done by selling government bonds. Thus, when the Fed sells bonds, it withdraws outstanding money from the economy, reducing economic transactions and consumption.
Ответ:
the correct answer is a) to stabilize europe and support democratic governments.