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What happens to the reserve requirement ratio during inflation?
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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.
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
What happens to the circulation of money during inflation?
prices go up
What happens to the open market operations during inflation?
sell more government bonds
What happens when the oxygen requirement increases during exercise?
aerobic respiration
How can the Federal Reserve use the reserve requirement the discount rate and open market operations during a time of recession?
Yes b/c this would increase the banker's availability to funds and thus increase the money supply, stimulating the economy.
Was inflation a big problem during the revolutionary war?
Inflation was a big problem for Americans during the Revolution
During periods of inflation tax rates should?
during periods of inflation tax rates sholkd
How did Wilson reform the banks?
Federal Reserve System to restore public confidence in the banking system. A Board of Governors were selected to control that reserve banks that charged other banks. This would indirectly allow the Board to fight inflation (through raising interest rates) and also to stimulate the economy during a recession.
How did Wilson reform the banking industry?
Federal Reserve System to restore public confidence in the banking system. A Board of Governors were selected to control that reserve banks that charged other banks. This would indirectly allow the Board to fight inflation (through raising interest rates) and also to stimulate the economy during a recession.
What is inflation during colonial times?
british
