Fed
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Title: Fed

Essay Details:

Subject: Business
Author: Jerry B
Date: April 13, 2015
Level: University
Grade: A
Length: 1 / 263

Essay text:

If economic growth is considered to be undesirably rapid, the Fed will undertake a restrictive monetary policy with the goal of slowing economic growth and dampening inflationary pressures. If economic growth is considered to be undesirably slow or the economy is in a recession, the Fed will undertake an expansionary monetary policy with the goal of accelerating economic growth and lowering the unemployment rate. Monetary policy may not always have the economic effects the Fed desires. Falling interest rates increase consumption. The "new" money created by the Fed is lent out or invested by financial institutions and finds its way into the economy...

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