What monetary policy would the federal reserve adopt to control inflation

Social Studies

1 answer:

Maslowich2 years ago

7 0

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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