The Next Question Is Based on This Table

question 39

Multiple Choice

The next question is based on this table.

-In December 1991,the Fed cut the discount rate by a full percentage point to 3.5 percent,the lowest discount rate in 27 years.This move clearly reflects the Fed's

• A) concern that inflation was getting out of control.
• B) desire to reduce bank reserves.
• C) effort to eliminate the large government budget deficit.
• D) need to borrow more money from abroad.
• E) attempt to send a clear signal to the banking system that it was time to expand credit.

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Definitions:

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or experiencing non-restorative sleep, leading to distress and impairment in daily functioning.

Alcohol Withdrawal

Symptoms that occur when a person who has been drinking heavily for a long time suddenly stops or significantly reduces alcohol intake.

Tremulousness

A physical condition characterized by involuntary, rhythmic muscle contractions leading to shaking movements in one or more parts of the body; often a symptom of medical conditions or withdrawal.

Perspiration

The process of sweating, a natural mechanism for the body to regulate temperature.