English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

2 answers

Raise interest rates! This will slow down economic expansion.

2007-11-28 19:10:29 · answer #1 · answered by Nick 2 · 1 0

Too much growth in the stock of money is the cause of inflation, so causing money supply growth to slow will curb inflation. The Fed can do this by increasing the federal funds rate, by increasing the discount rate and by the fed selling bonds through open market transactions.

2007-11-29 03:12:08 · answer #2 · answered by ace 3 · 1 0

fedest.com, questions and answers