Federal Reserve policy appears to be
A) more concerned with avoiding recession rather than preventing inflation.
B) more concerned with preventing inflation rather than avoiding recession.
C) equally concerned with avoiding recession and preventing inflation.
D) motivated by whether inflation or recession is the current problem.

Question

Quizplus · Accepted Answer

The Federal Reserve often prioritizes preventing inflation as part of its dual mandate to foster maximum employment and price stability. High inflation erodes purchasing power and can lead to economic instability, prompting the Fed to take actions like raising interest rates to cool the economy and prevent runaway inflation.

Federal Reserve Policy Appears to Be