If the Economy Is Inflationary, the Fed Would Most Likely

question 52

Multiple Choice

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

• A) increase bank reserves by raising the discount rate.
• B) increase bank reserves by buying government securities
• C) decrease bank reserves by lowering the discount rate.
• D) decrease bank reserves by selling government securities.

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Definitions:

Line Voltage

The voltage measured between any two phases in a multi-phase electrical system.

Phase Voltage

The voltage measured across a single component in a multiphase system.

Wye

A three-phase connection in electrical systems where the endpoints of three coils are connected at a single neutral point, forming a Y shape, commonly used in power distribution.

Delta

In electrical engineering, it often refers to a triangular connection in a three-phase system where the end of one winding is connected to the start of the next.