The best combination of Federal Reserve and Congressional actions to best fight inflation could be this one.
The Congress can approve <em>the raise of taxes </em>and <em>cut government spending</em>. Meanwhile, the <em>Federal Reserve raises interest rates</em>. The Federal Reserve controls the monetary policy. So this combination would be the best to fight inflation, which is a rise in the general level of prices in the country.
Another monetary policy by the Federal Reserve to fight inflation is to sell bonds to commercial Banks, increasing the interest that is paid to banks on reserves. The Congress and the president must be aware of these measures because they are the elements of the government that can make fiscal policies decisions.
Answer:
The following statements are correct:
When productive resources decrease in price, producers will make more of a product.
Productive resources are also known as the factors of production. The factors of production are four: labor, land, capital, and entrepreneurship. When the factors of production are cheaper, firms can buy more factors, and thus, increase output.
Increases in the number of sellers of a product will cause a decrease in the equilibrium price of that product.
If supply increases, and demand stays constant, more goods will be offered to the same amount of customers. This will cause the equilibrium price of those goods to fall.
Answer:
Dual federalism is a political system where the responsibilities and powers of the federal government and the state governments are distinctly separated. In the cooperative federalism, the line of distinction between the powers and responsibilities of the national government and the state governments is blurred.
