Question
What effects does a federal reserve have on the economy? Select the three correct answers.
Income distribution
Economic growth
Poverty rate
Individual income tax rates
Prices
Employment
Income distribution
Economic growth
Poverty rate
Individual income tax rates
Prices
Employment
Answers
GPT 3.5
The correct answers are:
1. Economic growth: The Federal Reserve has the power to influence economic growth by implementing monetary policies that can stimulate or constrain the economy.
2. Prices: The Federal Reserve's actions and decisions can impact the general price level and inflation through its control over interest rates and money supply.
3. Employment: The Federal Reserve plays a crucial role in promoting full employment by managing monetary conditions that can influence job creation and unemployment rates.
1. Economic growth: The Federal Reserve has the power to influence economic growth by implementing monetary policies that can stimulate or constrain the economy.
2. Prices: The Federal Reserve's actions and decisions can impact the general price level and inflation through its control over interest rates and money supply.
3. Employment: The Federal Reserve plays a crucial role in promoting full employment by managing monetary conditions that can influence job creation and unemployment rates.