Question

HELP PLEASE

If the country was experiencing high inflation, the government {Congress + the President} could _____________________ to help slow down the growth & bring the economy back to it's original level.


A)
raise interest rates


B)
increase spending AND decrease taxes


C)
lower interest rates


D)
decrease spending AND increase taxes
Which monetary policy tool is being used when the federal reserve buys and sells US government securities?


A)
discount rate


B)
Open Market Operations


C)
reserve requirement


D)
Tax hikes

Answer 1

1.

The correct answer was

A) raise interest rates

(Higher interest rates are intended to slow down the economy by making borrowing harder.)

____________________________________________________________

2.

B) Open Market Operations

Answer 2

c and b is the answer