If the Federal Reserve Authorities Were Attempting to Reduce Demand-Pull

question 13

Multiple Choice

If the Federal Reserve authorities were attempting to reduce demand-pull inflation, the proper policies would be to

• A)sell government securities, raise reserve requirements, raise the discount rate, and increase the interest paid on reserves held at the Fed banks.
• B)buy government securities, raise reserve requirements, raise the discount rate, and reduce the amount of interest paid on reserves held at the Fed
• C)sell government securities, lower reserve requirements, lower the discount rate, and increase the interest paid on reserves held at the Fed banks.
• D)sell government securities, raise reserve requirements, lower the discount rate, and increase the interest paid on reserves held at the Fed banks.

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Definitions:

Stabilizing Selection

A type of natural selection that favors intermediate variations of a trait, leading to a decrease in variation in the population over time.

Selection Type

A method or criteria used to choose or make a decision among various options.

Heterozygote Advantage

A phenomenon where individuals with two different alleles of a gene (heterozygotes) have a greater survival and reproductive advantage than those with two identical alleles.

Sickle Cell Anemia

An inherited blood disorder characterized by the production of abnormal, sickle-shaped red blood cells, leading to various health complications.