BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a) Maximum employment
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b) Low Taxes
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c) Stable Prices
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d) Moderate long-term interest rates
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Unattempted
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Detailed explanation-1: -Federal Open Market CommitteeYour answer was:D, you are correct.
Detailed explanation-2: -It is the Federal Reserve’s actions, as a central bank, to achieve three goals specified by Congress: maximum employment, stable prices, and moderate long-term interest rates in the United States (figure 3.1).
Detailed explanation-3: -The correct answer is A) fair wages. Fair wages are not a goal of monetary policy.
Detailed explanation-4: -Interest rates are impacted by many factors, including monetary policy, economic growth, and inflation. An expansionary monetary policy may reduce interest rates in the short run. But it may also boost national output and inflation. Increases in output and inflation often lead to higher interest rates in the long run.