Question 21(Multiple Choice Worth 4 points)
(03.05 MC)
The country has entered a period of economic growth, but prices are rising too rapidly. Which action would the Federal Reserve take
to stabilize prices?
O Decrease the federal funds rate.
O Decrease the reserve requirement.
O Purchase government securities.
O Raise the discount rate.
Out 33.
2

Question

10-06-2024
Mathematics

Answered

Question 21(Multiple Choice Worth 4 points)
(03.05 MC)
The country has entered a period of economic growth, but prices are rising too rapidly. Which action would the Federal Reserve take
to stabilize prices?
O Decrease the federal funds rate.
O Decrease the reserve requirement.
O Purchase government securities.
O Raise the discount rate.
Out 33.
2

Answer :

Other Questions

Why was Louis XVI considered ineffectual ?

A hot-air balloon is at an elevation of 4,800 feet if the balloon falls 40 feet per minute how long will it take for the balloon to reach 2000 feet

1. For which value of x is the expression log base 4 of (x+3) not defined? a. 0 b. -2 c. 3 d. -4 2. If log 7= a, what is the value of log 490 in terms of a? 3.

Elaine and her bike have a combined mass of 50 kg. in a bicycle race, Elaine uses the pedals to create a forward force of 75 N. Assume that there is a constant

maren walks 3 / 5 mile in 24 minutes at a steady pace. how long does it take her to walk 2 miles

which one of the following sentences contains an abstract noun? a. Logic is easily understood b. his skill was legendary c. the case was quite expensive d. th

Any factor that changes the shape of an enzyme can affect the enzyme's activity. Which of the following two factors affect an enzyme's operation the most?

Capitalism emerged as an economic force in ___.

In comparing an oak tree with a maple tree, you can correctly say that A. Both maple and oak trees lose their leaves in the fall. B. Unlike oak roots, maple ro

An airplane takes off 12 and a half miles south of a city and flies due north at a constant speed of 180 miles per hour what is the plane's position relative to

GinnyAnswer GinnyAnswer · Answer 1 · 2024-06-10T14:44:57-04:00

Final answer:

The Federal Reserve would raise the discount rate or purchase government securities to stabilize prices during rapid inflation in a period of economic growth.

Explanation:

To stabilize prices when the country is experiencing rapid inflation during economic growth, the Federal Reserve would raise the discount rate. Increasing the discount rate makes borrowing more expensive, leading to reduced spending and subsequently helping to control rising prices.

Additionally, purchasing government securities is another tool the Federal Reserve can use to stabilize prices. By buying these securities, the Fed reduces the money supply, which can help curb inflationary pressures.

Both actions - increasing the discount rate and purchasing government securities - are aimed at tightening monetary policy to mitigate inflationary trends.

Learn more about Monetary policy tools and inflation stabilization here:

https://brainly.com/question/31447486