Final answer:
The Federal Reserve's primary goals are to control inflation, foster full employment, and encourage economic growth. Encouraging consumer spending is not a primary goal of the Federal Reserve. The central bank's focus is on managing macroeconomic factors like inflation, employment, and growth, rather than directly promoting consumer spending (option b).
Step-by-step explanation:
The Federal Reserve’s primary goals include stabilizing prices, achieving full employment, and fostering economic growth. Among the options provided, the goal that is NOT a primary goal of the Federal Reserve is to encourage consumer spending (option b). This is because the Federal Reserve's main focus is on macroeconomic outcomes such as low inflation, full employment, and sustainable economic growth, rather than directly promoting consumer spending.
The stability of prices is a key concern for the Federal Reserve to avoid sharp increases in inflation, which reduces the value of money and increases the cost of living. Another fundamental goal is to generate full employment, which contributes to a healthier economy. Lastly, the Federal Reserve strives for moderate the business cycle and help achieve long-term economic growth, while managing the trade-offs between these potentially conflicting objectives such as between reducing inflation and maintaining full employment. Monetary policy is the primary tool of the Federal Reserve, and it is widely agreed that maintaining low inflation is crucial as it provides a better climate for a growing economy. It also allows businesses to make investment decisions based on real economic issues rather than inflation-related costs and risks. Thus, although the Fed's actions can influence consumer behavior indirectly, actively encouraging consumer spending is not enumerated as a primary goal.