QuestionJuly 24, 2025

The Fed can help the economy by controlling: bailout legislation. interest rates. exchange rates. the president's economic agenda.

The Fed can help the economy by controlling: bailout legislation. interest rates. exchange rates. the president's economic agenda.
The Fed can help the economy by controlling:
bailout legislation.
interest rates.
exchange rates.
the president's economic agenda.

Solution
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Answer

interest rates. Explanation 1. Identify the Fed's primary tool The Federal Reserve (Fed) primarily influences the economy through monetary policy, which involves controlling interest rates. 2. Evaluate other options Bailout legislation, exchange rates, and the president's economic agenda are not directly controlled by the Fed. Bailouts are typically legislative actions, exchange rates are influenced by market forces, and the president's agenda is a political matter.

Explanation

1. Identify the Fed's primary tool<br /> The Federal Reserve (Fed) primarily influences the economy through monetary policy, which involves controlling interest rates.<br /><br />2. Evaluate other options<br /> Bailout legislation, exchange rates, and the president's economic agenda are not directly controlled by the Fed. Bailouts are typically legislative actions, exchange rates are influenced by market forces, and the president's agenda is a political matter.
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