When interest rates are increased, borrowing money becomes more expensive. This translates into both individuals and buisnesses having to slow down their enconomic growth, because financing their activities or production also becomes more expensive.
The Federal Reserve has the <u>double-task</u> of keeping prices manageable in a flourishing economy while keeping unemployment as low as possible. When there's inflation, it's been proven that slowing down the economy by increasing interest rates, tends to reduce inflation. That's why it's a good option. We have to keep in mind, however, that this will raise unemployment as a collateral effect.
As you can see, there's no easy answer when it comes to balancing all factors at the same time.
Hope this helps!
Answer:
Fourteenth Amendment
Explanation:
Congress drafted the Fourteenth Amendment, which prevented states from denying rights and privileges to any U.S. citizen, now defined as "all persons born or naturalized in the United States." This definition was expressly intended to overrule and nullify the Dred Scott decision.
The main goal of a political party is to win the election by getting the most votes and seats .
Answer:
Popular sovereignty
Explanation:
"The power to govern comes from the people," is a principle of the popular sovereignty doctrine.
