Describe how the Federal Reserve uses the tools of monetary policy to promote price stability, full employment, and economic growth. (20 points + brainliest)​

Respuesta :

Destabilizer: Inflation

Fiscal Policy: Increase Taxes, Decrease Spending; Tight

Monetary Policy: Increase Interest Rates

Destabilizer: Unemployment

Fiscal Policy: Decrease Taxes, Increase Spending

Monetary Policy: Decrease interest rate; Easy

Answer: The goals of monetary policy are to promote maximum employment, stable prices and moderate long-term interest rates. By implementing effective monetary policy, the Fed can maintain stable prices, thereby supporting conditions for long-term economic growth and maximum employment.

Explanation: