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The Federal Reserve respond to an overheated economy or boom by selling bonds in the open market.

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8y ago
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15y ago

By buying bonds in the open market

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10y ago

They could sell bonds in the open market

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Q: How might the federal reserve to an overheated economy or boom?
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How might the federal reserve response to a slowdown in economy or recession?

By buying bonds in the open market(correct answer for apex)


Should the federal reserve control the money supply?

Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.


Why does the federal reserve act as a financial regulator?

The Federal Reserve System regulates the nation's supply of money and credit to do its best to ensure that the growth of money and credit will be adequate to meet the longer term needs of a steadily expanding economy and take actions on a short term basis to slow or accelerate this growth in order to dampen inflationary or deflationary pressures.


What is the value of a 2003 2 dollar Federal Reserve Note?

US $2 Federal Reserve Notes printed since 1976 are generally only worth face value in circulated condition. An uncirculated 2003 note might retail for all of $3.


Under what economic condition might you expect the Federal Reserve to raise interest rates?

The Federal Reserve will raise its interest rates once the US economy shows signs of strength. The Financial markets in the US are highly volatile and needs to ease down on their artificial fluctuations and become more steady. Currency, checking accounts, mutual funds and savings accounts are measuring sticks that affects the monetary policy. Inflation should move above 2 percent. These economic conditions play an important role.

Related questions

How might the federal reserve respond to the slowdown in the economy or recession?

By buying bonds in the open market


Why do you have a federal reserve?

Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.


How might the federal reserve response to a slowdown in economy or recession?

By buying bonds in the open market(correct answer for apex)


Should the federal reserve control the money supply?

Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.


Why do you have a federation?

Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.


Why does the federal reserve act as a financial regulator?

The Federal Reserve System regulates the nation's supply of money and credit to do its best to ensure that the growth of money and credit will be adequate to meet the longer term needs of a steadily expanding economy and take actions on a short term basis to slow or accelerate this growth in order to dampen inflationary or deflationary pressures.


How might monetary policy be used to combat inflations fears?

The Federal Reserve might raise interest rates.


Does the federal reserve bank have any bearing on the value of a 10 dollar bill?

Absolutely. The Federal Reserve controls the amount of federal reserve notes in circulation. The more notes in circulation the less each of them is worth, the less notes in circulation the more each note is worth. For example, today $10 can buy you a meal at a sit-down restaurant. If the Federal Reserve made more dollar bills, that $10 might only buy a sandwich at a fast food chain that today costs $1. If the Federal Reserve actively took out notes and didn't replace them, that $10 might buy 2 meals at a sit-down restaurant.


What is the value of a 2003 2 dollar Federal Reserve Note?

US $2 Federal Reserve Notes printed since 1976 are generally only worth face value in circulated condition. An uncirculated 2003 note might retail for all of $3.


Volvo 850 overheated at highway speed what might be damaged?

Check coolant in Radiator!!! Radiator might be empty, fill it, it's probably the reason why your engine is overheated


Does pouring water into the reserve tank in over heating car causes damage?

It can. You should leave the engine running while you add water to the radiator. If you add water with the engine turned off, but while the engine is overheated, you might damage the engine or the radiator.


Under what economic condition might you expect the Federal Reserve to raise interest rates?

The Federal Reserve will raise its interest rates once the US economy shows signs of strength. The Financial markets in the US are highly volatile and needs to ease down on their artificial fluctuations and become more steady. Currency, checking accounts, mutual funds and savings accounts are measuring sticks that affects the monetary policy. Inflation should move above 2 percent. These economic conditions play an important role.