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HFA TEST 2 2025 QUESTIONS| WITH ALREADY SOLVED CORRECTLY ANSWERS!! | ASSURED SUCCESS

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HFA TEST 2 2025 QUESTIONS| WITH ALREADY SOLVED CORRECTLY ANSWERS!! | ASSURED SUCCESS Dual Mandate of the Federal Reserve -

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HFA TEST 2 2025 QUESTIONS| WITH
ALREADY SOLVED CORRECTLY
ANSWERS!! | ASSURED SUCCESS



Dual Mandate of the Federal Reserve - 🧠ANSWER ✔✔maximum

employment and low, stable inflation


monetary policy - 🧠ANSWER ✔✔controlled by the central bank, setting a

target for federal funds rate which affects interest rates, and buying/selling

bonds on open market


expansionary monetary policy - 🧠ANSWER ✔✔to get max employment,

lowers interest rates, and purchases bonds


contractionary monetary policy - 🧠ANSWER ✔✔to get low inflation, raises

interest rates, sells bonds


fiscal policy - 🧠ANSWER ✔✔government spending and taxes


expansionary fiscal policy - 🧠ANSWER ✔✔to stimulate economic growth,

lowering taxes, and increasing government spending



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