The Federal Reserve's attempts to combat a recession and high unemployment could result in faster inflation.

Question

Quizplus · Accepted Answer

When the Federal Reserve injects more money into the economy through measures such as lowering interest rates or purchasing government bonds, there is a risk of inflation as there is more money chasing the same amount of goods and services. However, the Federal Reserve also has tools to control inflation if it becomes a concern.

The Federal Reserve's Attempts to Combat a Recession and High