Register
1. What action should the Federal Open Market Committee (FOMC) take if it sees signs of inflation rising above 2% and believes inflation will continue to rise if it takes no action? 2. Explain how the
100,975 views
37 votes
37 votes
1. What action should the Federal Open Market Committee (FOMC) take if it

sees signs of inflation rising above 2% and believes inflation will continue to
rise if it takes no action?
2. Explain how the action you suggest will work to control inflation.

User Dambo
by
2.8k points

1 Answer

9 votes
9 votes

Answer: Governments can use wage and price controls to fight inflation, but that can cause recession and job losses

Explanation: Governments can also employ a contractionary monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.

User Metlira
by
2.5k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
Link Copied!