If Severe Demand-Pull Inflation Was Occurring in the Economy, Proper

question 40

Multiple Choice

If severe demand-pull inflation was occurring in the economy, proper government policies would involve a government

• A)budget deficit, the purchase of securities in the open market, a higher discount rate, and higher reserve requirements.
• B)budget deficit, the sale of securities in the open market, a higher discount rate, and lower reserve requirements.
• C)budget surplus, the sale of securities in the open market, a higher discount rate, and higher reserve requirements.
• D)budget surplus, the purchase of securities in the open market, a lower discount rate, and lower reserve requirements.

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