If the fed engages in open market sales in direct response to an increase in the rate of inflation, this is known as

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Anna Mcgrath

Business

15 October, 07:05

If the fed engages in open market sales in direct response to an increase in the rate of inflation, this is known as

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Travis Key · Answer 1

If the fed engages in open market sales in direct response to an increase in the rate of inflation, this is known as active policy making.

active policy making refers to the policies created by the government specifically to tackle economic problems. The open market sales is used to take away money from the market and reduce the inflation rate