The correct option is low unemployment, price stability and sustainable economic growth.
Explanation: The Federal Reserve is the central banking system of the U.S. Therefore, it is responsible for the control the financial activities in the country. It aims at low unemployment, stability of price and sustain the economic growth of the company.
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Question 16 The Federal Reserve uses a variety of monetary policy tools to achieve which of...
The Keynesian view of the appropriate operating procedures and goals of monetary policy is that: A.The Federal Reserve should target the growth of a monetary aggregate with the primary goal being full employment and high growth, and a secondary goal of price stability. B.The Federal Reserve should target both the growth of a monetary aggregate and the level of interest rates with the primary goal being full employment and high economic growth, and a secondary goal of price stability. C.The...
WEEK 6: MONETARY POLICY AND FISCAL POLICY A healthy economy typically has low rates of unemployment and steady prices. Low rates of unemployment means that the economy is operating at its full potential. To ensure the economy continues to operate at potential GDP (full capacity where all savings are invested in production functions, and where all those who wish to work can find a job, and all other factors of production are fully utilized in the production function), governments use...
Compare and contrast the consequences – intended and unintended – of different monetary policy actions of the Federal Reserve Board to achieve macroeconomic goals of stable prices, low unemployment, and economic growth. What effects can occur with different Federal Reserve actions (such as increasing money supply or raising interest rates)?
Federal Reserve Board Chairmen Paul Volcker, as well as later Fed chairs, focused on which of the following as their main goal of monetary policy? high employment stability of financial markets economic growth price stability
1. List and explain the 3 tools of Federal Reserve Monetary Policy. 2. Explain how the Federal Reserve would use expansionary monetary policy to close a recessionary gap. Explain how the money supply, interest rate, investment spending, consumer spending, aggregate demand, real GDP, unemployment, and price level is affected. Illustrate this graphically below
If you were the Federal Reserve chairman, which monetary policy would you advise the federal government to adopt? Explain why. o Return to the classical gold standard o A gold price targeting policy o A monetary rule (i.e., increase the M2 money supply at a steady rate equal to the long-term real GDP growth rate, and allow interest rates to fluctuate without interference. o Price inflation target, i.e., set a maximum price inflation target, based on the Consumer Price Index...
11. There are several tools that the Federal Reserve System uses to implement monetary policy. a. Describe these tools b. Explain how the Fred would use each tool in order to increase the money supply.
Question 1 -- / 10 1) The Federal Reserve Board has a variety of monetary tools available to it to influence the economy. Identify and define the most commonly used mechanism of monetary policy and one additional tool of your choice. Discuss the effect of each of these tools on the relevant parties. Question 2 ( -- / 10 ) 2) Define balance of payments. What is the difference between a positive balance of payments and a negative balance of...
When would the Federal Reserve engage in contractionary monetary policy? a. never b. when inflation is high c. when unemployment is high d. when gdp is low
Discuss the following monetary policy goals and how central banks try to achieve them. 1. Price Stability (inflation Targeting 2. High employment and output stability 3. Economic growth 4. Stability of financial markets 5. Interest-rate stability 6. Stability in foreign exchange markets