Register
29) The Federal Reserve usually responds to inflation with which of the following: A) An increase in the discount rate B) A decrease in the discount rate C) The purchase of Treasury Notes D) A decrease
209k views
5 votes
29) The Federal Reserve usually responds to inflation with which of the following: A) An increase in the discount rate B) A decrease in the discount rate C) The purchase of Treasury Notes D) A decrease in the reserve requirement

User Matthew Hannigan
by
8.8k points

1 Answer

0 votes
The Fed usually reacts to inflation by initiating "A) An increase in the discount rate", which dissuades the banks from borrowing and thus lending out more money.
User Gardy
by
8.5k points
← Prev Question Next Question →

Related questions

Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.5m questions

12.2m answers

Other Questions

is it true or false that after the american revolution conflicts in the northwest territory erupted between remaining british soldiers and native americans
Who made dutch claims in north america?
What was an effect of nationalism in Europe in the early 1900s?
What were the positive and negative effects of Egypt being imperialized by Britain.
King Louis XVI A.He admired the revolution's principles. B. He was suspicious of the leaders of the revolution. C. He felt it was a much better revolution than the American Revolution. D. He was frighten
Link Copied!