If the Economy Is in an Inflationary Boom, the Fed

question 164

Multiple Choice

If the economy is in an inflationary boom, 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:

Social Pressure

The influence exerted by a society or social group on individuals to conform to expected norms and behaviors.

Public Behavior

relates to how individuals act and interact in social settings and public places, governed by societal norms and etiquette.

Compliance

The act of conforming to a request or demand, often from a figure of authority.

Compliance Tactics

Strategies used to persuade or influence others to agree with or obey a request or command.