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

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22-04-2015
History

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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

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HistoryGuy HistoryGuy · Answer 1 · 2015-04-22T12:35:34-04:00

HistoryGuy HistoryGuy

22-04-2015

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.

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