If the Inflation Rate Is Rising,which One of the Following

question 24

Multiple Choice

If the inflation rate is rising,which one of the following would the Fed need to do to reduce the inflation rate?

• A) Lower margin requirements.
• B) Lower reserve requirements.
• C) Encourage more discount borrowing.
• D) Increase the federal funds rate.

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Definitions:

Cleavage

The tendency of a mineral to break along flat planar surfaces as determined by the structure of its crystal lattice.

Foliation

A feature of metamorphic rocks where mineral grains are arranged in planes or bands, giving the rock a layered appearance.

Joints

Natural fractures or separations in rocks along which there has been no significant movement parallel to the surfaces of the fracture.

Anticline

A type of fold that is arch-like and has its oldest rocks at its core, formed by the compression and bending of Earth's crust.