When the Fed Was Created in 1913

question 14

Multiple Choice

When the Fed was created in 1913,

• A)it had no role in the management of the nation's economy.
• B)it was restricted to providing emergency loans to financial institutions.
• C)it adhered to a strictly supply-side policy focus.
• D)its primary economic management tool was to reduce inflation by restricting the money supply.
• E)it was far more likely to increase the money supply by lowering interest rates than to restrict it by raising them.

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