The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decides to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed would reinforce each other to achieve that objective?
A. Selling government securities and raising the discount rate
B. Selling government securities and lowering the discount rate
C. Buying government securities and lowering the discount rate
D. Buying government securities and raising the reserve ratio
C. Buying government securities and lowering the discount rate
Economics
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A business cycle is the pattern of short-run upward and downward movements in production and jobs
Indicate whether the statement is true or false
Economics
Bob invests $25 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. From this information we can conclude that Bob is
A) risk loving. B) risk neutral. C) risk averse. D) Any one of the three above.
Economics