Question

1. The goals of the Federal Reserve's monetary policy are to keep: unemployment low and the inflation rate stable. unemployment low and the inflation rate at zero percent . money supply stable and the unemployment rate at zero percent. money supply low and the unemployment rate at zero percent .

Answer 1

The Federal Reserve's monetary policy objectives are to maintain low unemployment and a stable inflation rate. They balance these goals by adjusting the money supply and interest rates.

Step-by-step explanation:

The goals of the Federal Reserve's monetary policy are to keep unemployment low and the inflation rate stable. The Fed has historically focused on controlling inflation as its primary goal, especially after experiencing high inflation rates in the past. However, when inflation is under control, the Fed also aims to stimulate the economy to close recessionary gaps and reduce unemployment. Monetary policy sometimes involves trade-offs, as measures to reduce inflation can lead to higher unemployment and vice versa. The Federal Reserve aims to balance these objectives to maintain overall economic health, keeping the money supply and interest rates at levels that promote a stable economy with low inflation and full employment.