ECONOMICS
FEDERAL RESERVE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
Tight Money
|
|
Easy Money
|
|
Do Nothing
|
|
None of the above
|
Detailed explanation-1: -Prominent leading indicators of inflation include the price of gold, broader indexes of commodity prices, and composite indicators that combine several economic series believed to predict the inflation rate.>
Detailed explanation-2: -Tight monetary policy aims to slow down an overheated economy by increasing interest rates. Conversely, loose monetary policy aims to stimulate an economy by lowering interest rates.
Detailed explanation-3: -Tight monetary policy is an action undertaken by a central bank such as the Federal Reserve to slow down overheated economic growth. Central banks engage in tight monetary policy when an economy is accelerating too quickly or inflation-overall prices-is rising too fast.
Detailed explanation-4: -GDP. Employment Figures. Industrial Production. Consumer Spending. Inflation. Home Sales. Home Building. Construction Spending. More items