News Reports Indicate That the Fed Plans to Announce Its

question 260

Multiple Choice

News reports indicate that the Fed plans to announce its third increase in the discount rate in the past five months. Additional reports suggest that the Fed may also increase the reserve requirement in the near future. Apparently the Fed perceives the number one problem facing the economy is

• A) the size of the federal deficit.
• B) unemployment.
• C) excessively high interest rates.
• D) inflation.