What effects does the Federal Reserve have on the economy?

Select the three correct answers.

(2 points)
Responses

employment
employment

poverty rate
poverty rate

economic growth
economic growth

individual income tax rates
individual income tax rates

income distribution
income distribution

prices
prices
Skip to navigation

1 answer

The three correct answers regarding the effects of the Federal Reserve on the economy are:

  1. employment
  2. economic growth
  3. prices

The Federal Reserve influences employment through monetary policy, which can affect economic growth and, in turn, impact the demand for labor. It also plays a significant role in price stability through its control over inflation and interest rates. The other options listed, such as poverty rate, individual income tax rates, and income distribution, are influenced by a variety of factors including fiscal policy and government programs, rather than directly by the Federal Reserve.

Similar Questions
    1. answers icon 1 answer
  1. What effects does the Federal Reserve have on the economy?Select the three correct answers. (2 points) employment economic
    1. answers icon 1 answer
  2. Basics of the Federal Reserve Quick Check5 of 55 of 5 Items Question What methods could the Federal Reserve use to stabilize the
    1. answers icon 1 answer
    1. answers icon 9 answers
more similar questions