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

question 331

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.