in the coming quarter. Given this information, the Federal Reserve is likely to _____.(1 point)
Responses
make efforts to lower the inflation rate because 1.5%
is greater than the desired rate of inflation
make efforts to lower the inflation rate because 1.5 percent is greater than the desired rate of inflation
make efforts to raise the inflation rate because 1.5%
is below the desired rate of inflation
make efforts to raise the inflation rate because 1.5 percent is below the desired rate of inflation
make efforts to maintain the inflation rate because 1.5%
is the desired rate of inflation
make efforts to maintain the inflation rate because 1.5 percent is the desired rate of inflation
take no action because 1.5%
is the ideal inflation rate
1 answer
The correct response would be:
make efforts to raise the inflation rate because 1.5% is below the desired rate of inflation.
Typically, many central banks, including the Federal Reserve, aim for an inflation rate around 2% as a target to support economic growth. If the projected inflation rate is below this target, the Fed may implement measures to encourage higher inflation, such as lowering interest rates or purchasing assets, to stimulate economic activity.
