If the Economy Is Inflationary, the Fed Would Most Likely

question 95

Multiple Choice

If the economy is inflationary, the Fed would most likely:

• A) encourage banks to provide loans by buying government securities.
• B) encourage banks to provide loans by raising the discount rate.
• C) encourage banks to provide loans by selling government securities.
• D) restrict bank lending by selling government securities.
• E) restrict bank lending by lowering the federal funds rate.

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Definitions:

Conductive Hearing

A form of hearing that involves the transmission of sound waves through the outer and middle ear components.

Midline

An anatomical term referring to the median plane or the line that divides the body into left and right halves.

Forehead

The part of the face above the eyebrows, forming the front portion of the skull.

Cochlear Duct

A spiral-shaped cavity in the inner ear, part of the auditory system, containing the organ of Corti that produces nerve impulses in response to sound vibrations.