shelbydupree shelbydupree
  • 06-01-2021
  • Business
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How does the federal reserve slow inflation and economic growth

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RahilRifah
RahilRifah RahilRifah
  • 06-01-2021

Answer:

At such high inflation rates, the economy tends to break down. ... When inflation is too high, the Federal Reserve typically raises interest rates to slow the economy and bring inflation down. When inflation is too low, the Federal Reserve typically lowers interest rates to stimulate the economy and move inflation higher.

Explanation:

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