When (if at all) are budget deficits inflationary?

A rise in deposit rates, all else constant, __________ a bank's __________ risk

A) lowers; credit B) lowers; interest rate C) raises; credit D) raises; interest rate

The most important tool of monetary policy is ________, through which the Fed affects the variable ________ in the money-creation formula

A) open market operations, e B) open market operations, H C) rediscount policy, e D) rediscount policy, c E) reserve requirement policy, e