Economy, asked by AGTG4eva, 2 days ago

What action should the Federal Open Market Committee (FOMC) take if it sees signs of inflation rising above 2% and believes inflation will continue to rise if it takes no action?

Answers

Answered by XxcutevishixX

Answer:

Governments can use wage and price controls to fight inflation, but that can cause recession and job losses.

Governments can also employ a contractionary monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.

Previous Question

Next Question

Similar questions

Computer Science, 1 day ago

show that the order in which the transformations are performed is important by the transformation of the triangle a(1, 0), b(0, 1), and c(1, 1), by (a) rotating 45" about the origin and then translating the the direction of vector i and (b) translating and then rotating.

Accountancy, 1 day ago

Task Ne2 2. Ken Williams Ventures' recently issued bonds that mature in 15 years. They have a par value of $1,00 and an annual coupon of 6%. If the current market interest rate is 8%, at what price should the bonds sell? A.$801.80 B.$814.74 C.$828.81 2 D.$830.53 E.$847.86 ...

Math, 1 day ago

The perimeter of rectangle and square are equal. If length of the rectangle is 8m and breadth is 6m. Find the area of square.

Business Studies, 2 days ago

Qi Write down 5 legal and statutory compliances for retailers in India.

English, 2 days ago

"Now I'll count up to twelve and you keep quiet and I will go". Why does the poet wish , to go at the end of the poem? (a) The poet does not believe people will be quiet. b) The poet has already invested enough time. (c) The poet will move on and seek to inspire others. (d) The poet is marking the end of the poem by leaving.

Math, 8 months ago

Simplify the following and write in exponential form.

Math, 8 months ago

cosec A +1 / cosec A -1 =(Sec A + tan A)^2...

Math, 8 months ago

arrang the following fractions 1 2/5 ,2 1/4 , 1 1/2 ,2 2/5...