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Which of these actions of the Federal Reserve can slow economic growth?
Wiki User
∙ 12y ago
you didn't put any choices but a sale of bonds or raising interest rates would slow economic growth.
Wiki User
∙ 12y ago
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Ensuring that enough money and credit are available to sustain economic growth without inflation is the primary mission of who?
Federal Reserve
What is a goal of federal economic policy?
The goal of a federal economic policy is to create a healthy economy in the country that benefits every citizen. The goals of federal economic policy include: maintain stable prices, full employment, economic growth.
What are the factors that affect the economic growth?
Things that can affect economic growth include: interest rates, the political environment, weather and a host of other things. The Federal Reserve sets monetary policies to help combat these factors.
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.
Why does the Federal Reserve alter monetary policy?
The Federal Reserve alters monetary policy to influence the amount of money and credit in the U.S. economy. These changes affect interest rates and the performance of the economy. The end goals of monetary policy are sustainable economic growth, full employment and stable prices.
Ensuring that enough money and credit are available to sustain economic growth without inflation is the primary mission of who?
Federal Reserve
What is a goal of federal economic policy?
The goal of a federal economic policy is to create a healthy economy in the country that benefits every citizen. The goals of federal economic policy include: maintain stable prices, full employment, economic growth.
What are the factors that affect the economic growth?
Things that can affect economic growth include: interest rates, the political environment, weather and a host of other things. The Federal Reserve sets monetary policies to help combat these factors.
What is monetary policy's?
Answer 1refers to the actions the federal reserve system takes to influence the level of real GDP and the rate of inflation in the economy.Answer 2Monetary policy refers to the control of the supply of money that usually targets the interest rate. This is done to promote stability and economic growth.
To manage the growth of the US economy?
Federal reserve Bank
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.
Why does the Federal Reserve alter monetary policy?
The Federal Reserve alters monetary policy to influence the amount of money and credit in the U.S. economy. These changes affect interest rates and the performance of the economy. The end goals of monetary policy are sustainable economic growth, full employment and stable prices.
What are not a goal of federal economic policy?
maintain stable prices, full employment, economic growth
How does FOMC achieve Fed Fund Rate targets?
Extracted from http://www.federalreserve.gov/generalinfo/faq/faqmpo.htm The federal funds rate is the rate charged by one depository institution on an overnight sale of immediately available funds (balances at the Federal Reserve) to another depository institution; the rate may vary from depository institution to depository institution and from day to day. The target federal funds rate is set by the Federal Open Market Committee (FOMC). By setting a target federal funds rate and using the tools of monetary policy--open market operations, discount window lending, and reserve requirements--to achieve that target rate, the Federal Reserve and the FOMC seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates," as required by the Federal Reserve Act. At each of its meeting, the FOMC examines a number of indicators of current and prospective economic developments. Then, cognizant that its actions affect economic activity with a lag, it must decide whether to alter its target for the federal funds rate. An actual decline in the rate stimulates economic growth, but an excessively high level of economic activity can cause inflation pressures to build to a point that ultimately undermines the sustainability of an economic expansion. An actual rise in the rate curbs economic growth and helps contain inflation pressures, and thus can promote the sustainability of an economic expansion; too great a rise, however, can retard economic growth too much. The FOMC's actions on the target federal funds rate are undertaken to achieve the maximum rate of economic growth consistent with price stability and moderate long-term interest rates. Extracted from http://www.frbsf.org/education/activities/drecon/answerxml.cfm?selectedurl=/2006/0604.html Specifically, to lower the fed funds rate, the Fed will instruct the open market desk in New York to purchase Treasury securities on the open market, which in turn infuses money into the banking system and thus moves the effective federal funds rate or price of those reserves down.
What are the implications of rising inflation to an economy?
No economic growth or development, foreign exchange reserve and impact on the monetary policy.
Which party tended to support a program of active federal support for economic growth?
Republicians
Who supported a program of active federal support for economic growth inlcuding high tariffs?
Republicans
