The U.S. Federal Reserve raised interest rates on Wednesday. The rate rise was the second in...

   

Transcribed Image Text:

The U.S. Federal Reserve raised interest rates on Wednesday. The rate rise was the second in three months. This second rise comes in an economy that is growing faster and creating jobs at a more rapid pace. These gains are accompanied by a ris- ing inflation rate. Source: Reuters, March 15, 2017 a. Describe the process by which the Fed's action reported in the news clip flows through the economy. b. Draw a graph to illustrate the state of the economy that prompted the Fed to take the action described in the news clip. c. Draw a graph to illustrate the Fed's action and its effect. The U.S. Federal Reserve raised interest rates on Wednesday. The rate rise was the second in three months. This second rise comes in an economy that is growing faster and creating jobs at a more rapid pace. These gains are accompanied by a ris- ing inflation rate. Source: Reuters, March 15, 2017 a. Describe the process by which the Fed's action reported in the news clip flows through the economy. b. Draw a graph to illustrate the state of the economy that prompted the Fed to take the action described in the news clip. c. Draw a graph to illustrate the Fed's action and its effect.

Answer rating: 100% (QA)

The process of Increasing Fed rates is termed under contractionary monetary pol... View the full answer