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Can someone Plss answer this question for me

1) Imagine you are the Chairman of the Federal Reserve facing the following scenario:
The economy is at full employment. Unemployment is low, but prices are rising at a
rate of 5% per quarter (every 3 months).
In a paragraph, explain what monetary policy action you would take. Be sure to describe both your
actions and what effects they will have on the economy.

Respuesta :

If I were the Chairman of the Federal Reserve, I would take steps to curtail the rising inflation. I would achieve this by carrying out a open market sale. This would reduce the supply of money in the economy and reduce inflation.

What is an open market sale?

Open market sale is a type of contractionary monetary policy. Contractionary monetary policy are steps taken by the government to reduce the supply of money in the economy.

To learn more about monetary policy, please check: brainly.com/question/3817564

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