Recently Oil Prices Have Risen in the U

question 42

Multiple Choice

Recently oil prices have risen in the U.S, generating concerns that inflation may increase. If the Fed wishes to ensure that inflation does not get out of hand the Fed could:

• A) intervene in the currency markets to push the value of the dollar down.
• B) decrease the discount rate.
• C) lower the target fed funds rate.
• D) lower the target money supply growth rate.
• E) reduce reserve requirements at banks.

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