Which of the following represents an action by the Federal Reserve that is designed to decrease the money supply?

A. a decrease in the discount rate
B. selling government securities in the open market
C. a decrease in the required reserve ratio
D. a decrease in federal spending

Answer: B

Economics

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What is the inflation rate using base year 1?

A) 10%. B) 15%. C) 20%. D) 25%.

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