Which of the Following Policies Would Be Most Likely to Reduce

question 52

Multiple Choice

Which of the following policies would be most likely to reduce the rate of inflation?

• A) sale of government bonds by the Federal Reserve
• B) a reduction in the discount rate
• C) an increase in the size of the federal budget deficit
• D) a reduction in the required reserves imposed on the banking system

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Definitions:

Multiply

The process of combining two numbers or quantities to get their product.

Simplify

Reducing a mathematical expression or equation to its most basic form without changing its value.

Special Product Pattern

Formulas that simplify the multiplication of algebraic expressions.

Multiply

The arithmetic operation of scaling one number by another, equivalent to adding a number to itself multiple times.