Which is the Federal Reserve more concerned about,the inflation rate or the money supply?
A) The Fed is more concerned about the inflation rate.
B) The Fed is more concerned about the money supply.
C) The Fed is equally concerned about the inflation rate and the money supply.
D) The Fed is more concerned about the inflation rate during expansions and the money supply during recessions.

Question

Quizplus · Accepted Answer

The Federal Reserve is more concerned about the inflation rate as it is one of their primary goals to keep inflation under control. The Fed uses monetary policy tools to manage the money supply in order to influence inflation, but inflation is the ultimate concern.

Which Is the Federal Reserve More Concerned About,the Inflation Rate