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:

Formal Sanctions

Officially enforced penalties or rewards for behavior, typically in a legal or organizational context.

Violations

Acts of breaking rules, laws, or agreements, leading to consequences or penalties.

Professional Conduct

Accepted standards of behavior and practices expected from individuals within a certain profession.

Model Code

A set of standardized legal guidelines or principles, often offered as a template for legislative bodies to adopt or adapt.