When Inflation Threatens,which of the Following Responses Is the Fed

question 69

Multiple Choice

When inflation threatens,which of the following responses is the Fed likely to make?

• A)expand the money supply
• B)lower the discount rate and thereby the cost of borrowing by banks
• C)lower interest rates
• D)sell off government bonds to banks and others thereby reducing the funds banks can lend to individuals and businesses

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Definitions:

Shoveling Snow

Physical activity of moving snow with a shovel to clear areas, which can be demanding on the body and heart.

Excess Calories

Consuming more calories than the body uses, potentially leading to weight gain and associated health risks.

Body Fat

The portion of the human body composed of fat tissue, important for energy storage, insulation, and protection.

Essential Fat

Necessary fat required for normal physiological functions, found in the marrow, organs, central nervous system, and muscles.