what monetary policy would the federal reserve adopt to control inflation

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02-03-2021
Social Studies

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what monetary policy would the federal reserve adopt to control inflation

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In the step by step simplification of expression below which property is not used? 3(1+x)3(x+1)3(x)+3(1)3x +3 A) associative B) commutative C) distributive D)

23urban 23urban · Answer 1 · 2021-03-02T13:37:03-05:00

23urban 23urban

02-03-2021

Answer:

When the Federal Reserve increases its interest rate, banks then have no choice but to increase their rates as well. When banks increase their rates, fewer people want to borrow money because it costs more to do so while that money accrues at a higher interest. So spending drops, prices drop and inflation slows.

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