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11 November, 10:39

Which of the following is not a goal of federal economic policy? full employment growth a high savings rate Keynesian economics

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  1. 11 November, 11:49
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    high savings rate

    Explanation:

    High savings rate is not a goal of federal economic policy. The goal of federal economic policy is to achieve full employment, economic growth and stable prices.

    However 'high savings rate' is achieved when interest rates are increased in order to fight inflation and achieve 'stable prices' because people keep their money in the banks to take advantage of the benefit of earning interest BUT this is not always the case because 'higher interest rates' works against full employment by making it too costly for firms to borrow for investments which will definitely create jobs.
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