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7. By what action does the Federal Reserve try to control inflation? a. Raise taxes b. Decrease the reserve ratio c. Lower interest rates d. Congressional approval
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7. By what action does the Federal Reserve try to control inflation?

a. Raise taxes
b. Decrease the reserve ratio
c. Lower interest rates
d. Congressional approval

User TheAddonDepot
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1 Answer

12 votes

Answer:

The primary job of the Federal Reserve is to control inflation while avoiding a recession. It does this with monetary policy. To control inflation, the Fed must use contractionary monetary policy to slow economic growth. The ideal economic growth rate is between 2%-3%.

Step-by-step explanation:

User Levibostian
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