The Fed's Countercyclical Policy During Expansion and Prosperity Includes

question 34

Multiple Choice

The Fed's countercyclical policy during expansion and prosperity includes:

• A) raising the required reserve ratio, raising the discount rate, and selling government bonds on the open market.
• B) raising the required reserve ratio, raising the discount rate, and buying government bonds on the open market.
• C) raising the required reserve ratio, cutting the discount rate, and selling government bonds on the open market.
• D) lowering the required reserve ratio, cutting the discount rate, and buying government bonds on the open market.

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Definitions:

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