Federal Reserve actions that stimulate or repress the level of prices or economic activity are called defensive activities.

Question

Quizplus · Accepted Answer

Federal Reserve actions that stimulate or repress the level of prices or economic activity are actually called monetary policy actions. The aim of monetary policy is to promote economic growth, stabilization of prices, and maintain full employment. Defensive actions, on the other hand, are actions taken by investors or traders to protect themselves against potential losses in uncertain or volatile markets.

Federal Reserve Actions That Stimulate or Repress the Level of Prices