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What effects does the Federal Reserve have on the economy?

Select the three correct answers.

(2 points)
Responses

prices
prices

employment
employment

poverty rate
poverty rate

income distribution
income distribution

economic growth
economic growth

individual income tax rates
individual income tax rates
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1 answer

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

  1. Prices
  2. Employment
  3. Economic growth

The Federal Reserve influences prices through monetary policy, affects employment through interest rates and economic activity, and impacts economic growth by managing the money supply and credit conditions.