Sometimes the Fed's goals conflict,and the Fed must emphasize one goal over another.Which of the following is a goal of the Fed that might conflict with its goal of full employment?
A) promoting economic growth
B) promoting an equitable distribution of income
C) keeping the price level stable
D) keeping tax rates low

Question

Quizplus · Accepted Answer

Keeping the price level stable (i.e., controlling inflation) can conflict with the goal of full employment, as inflationary pressures may require the Fed to raise interest rates, which could lead to higher unemployment in the short run. A, B, and D are not necessarily conflicting goals with full employment.

Sometimes the Fed's Goals Conflict,and the Fed Must Emphasize One