Question

What are the two main economic concerns of the Feds? (pick one answer) A. GDP growth...

What are the two main economic concerns of the Feds? (pick one answer)

A.

GDP growth rates and inflation

B.

Unemployment rates and consumer confidence

C.

Inflation and homes sales

D.

Inflation and unemployment rates

E.

Home sales and the strength of the U.S. dollar

F.

Exchange rates and the GDP growth rate

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Answer #1

The best option is - D

The reason is :

As the Federal Reserve conducts monetary policy, it influences employment and inflation primarily through using its policy tools to influence the availability and cost of credit in the economy.

The primary tool the Federal Reserve uses to conduct monetary policy is the federal funds rate—the rate that banks pay for overnight borrowing in the federal funds market. Changes in the federal funds rate influence other interest rates that in turn influence borrowing costs for households and businesses as well as broader financial conditions.

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