Question

Economic forecasters predict a long period of job growth and consumer spending. The Federal Reserve is most likely to do which of the following to encourage this expansion?

Increase federal funds rate

Keep the discount rate low

Sell government securities

Maintain high reserve requirements

Answer 1

keeping the discount rate low is the answer

Answer 2

"Increase Federal fund rate" is the one thing among the following choices given in the question that the Federal Reserve is most likely to do to encourage this expansion. The correct option among all the options that are given in the question is the first option. I hope that the answer has helped you.