When inflation is the fed aims to slow the economy

Posted By Admin @ September 03, 2022

Question:

When inflation is , the Fed aims to slow the economy.

Answer:

When inflation is HIGH, the Federal Reserve aims to slow down the economy.


In the case of the USA the central bank in charge of controlling the monetary system is the Federal Reserve, now in order for them to apply a contraction policy to reduce the amount of money spent they usually raise the interest rates which main goal would be to get consumers to save their money managing to slow down the economic growth and the inflation with it

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