The Fed Can Raise the Discount Rate When It Wants

question 14

Multiple Choice

The Fed can raise the discount rate when it wants to:

• A) decrease the money supply.
• B) increase the money supply.
• C) decrease the budget deficit.
• D) increase the budget deficit.

---

Definitions:

Nonfamily Household

Living arrangements where individuals reside alone or with people to whom they are not related by blood, marriage, or adoption.

Children

are young human beings who are not yet fully mature, typically characterized by a stage of development that precedes adolescence and adulthood.

Marrying

The legal or formal joining of two people as partners in a personal relationship, recognized and sanctioned by law or cultural practice.

Fewer Children

A situation or trend where there is a reduction in the number of children within a family, society, or demographic group.