Since the mid-1990s, the Federal Reserve has sought to maintain a relatively low rate of inflation by
A) consistently raising short- and long-term interest rates.
B) restricting the amount of cash in bank vaults.
C) deregulating credit card companies.
D) generally accommodating the money and credit needs of the economy.

Question

Quizplus · Accepted Answer

The Federal Reserve has pursued a policy of generally accommodating the money and credit needs of the economy in order to maintain a relatively low rate of inflation. This involves adjusting monetary policy in response to changes in economic conditions, such as increasing or decreasing interest rates, to promote stable economic growth and keep inflation under control.

Since the Mid-1990s, the Federal Reserve Has Sought to Maintain