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What does the Federal Reserve Board attempt to achieve by limiting the instability of inflation?
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∙ 12y ago
economic stability.
Wiki User
∙ 12y ago
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Who calculates the inflation rate in US?
Inflation rate is calculated by Reserve Bank of India . For inflation rate , basic necessitygoods price is taken as base and on that bases inflation rate is calculated.
Which of these is an example of how the Federal Reserve would slow the economy to hold off inflation?
One way the Federal Reserve would slow the economy to hold off inflation would be to increase the amount of money banks must have on reserve.
What are three ways the federal reserve can affect the money supply?
It can put a reccesion or inflation.
How does government intervene to lower inflation or unemployment?
The government acts on inflation through The Federal Reserve. The Federal Reserve acts on inflation by targeting interest rates through the reserve requirement. When interest rates are high, people want to keep money in their bank accounts, and inflation decreases. When interest rates are low, people are more willing to spend their money and inflation increases. Once, the Federal Reserve actually pushed the United States into a recession once to battle especially high inflation. Ever since then, it has been very important for the Federal Reserve to keep inflation in check. The government, as demonstrated during the latest recession, enacts many different stimulus packages to help the economy recover and help unemployment come down from extremely high percentages.
Is the Federal Reserve responsible for determining the inflation rate and the unemployment rate?
The Federal Reserve does not set the inflation or unemployment rates. These rates are naturally fluctuating based on market activities. Typically, as inflation rises, unemployment decreases and vice versa (except in the case of stagflation in 1970's). The Federal Reserve DOES, however, adjust interest rates and various other rates to control the money supply in order to combat unemployment and inflation. See the "Money Supply Theory."
What federal agency is responsible for managing inflation?
the federal reserve board
Who calculates the inflation rate in US?
Inflation rate is calculated by Reserve Bank of India . For inflation rate , basic necessitygoods price is taken as base and on that bases inflation rate is calculated.
Which of these is an example of how the Federal Reserve would slow the economy to hold off inflation?
One way the Federal Reserve would slow the economy to hold off inflation would be to increase the amount of money banks must have on reserve.
Should in periods of inflation the federal reserve raise or lower the discount rate?
lower
What are three ways the federal reserve can affect the money supply?
It can put a reccesion or inflation.
How does government intervene to lower inflation or unemployment?
The government acts on inflation through The Federal Reserve. The Federal Reserve acts on inflation by targeting interest rates through the reserve requirement. When interest rates are high, people want to keep money in their bank accounts, and inflation decreases. When interest rates are low, people are more willing to spend their money and inflation increases. Once, the Federal Reserve actually pushed the United States into a recession once to battle especially high inflation. Ever since then, it has been very important for the Federal Reserve to keep inflation in check. The government, as demonstrated during the latest recession, enacts many different stimulus packages to help the economy recover and help unemployment come down from extremely high percentages.
Is the Federal Reserve responsible for determining the inflation rate and the unemployment rate?
The Federal Reserve does not set the inflation or unemployment rates. These rates are naturally fluctuating based on market activities. Typically, as inflation rises, unemployment decreases and vice versa (except in the case of stagflation in 1970's). The Federal Reserve DOES, however, adjust interest rates and various other rates to control the money supply in order to combat unemployment and inflation. See the "Money Supply Theory."
Inflation was reduced gradually during the Reagan administration because of the efforts of what federal reserve chairman?
paul volcker
During Carter's administation how did the government try to fight inflation?
The Federal Reserve began raising interest rates
In a period of low inflation and economic recession, the federal reserve is expected to take which action?
Tightening the money supply
Ensuring that enough money and credit are available to sustain economic growth without inflation is the primary mission of who?
Federal Reserve
To curb inflation in the late 1970's the Federal Reserve system forced interest rates upwards This is an example of?
Monetary policy
