When the Fed considers the rate of inflation to be undesirably high, it would most likely
a. encourage banks to provide loans by lowering the discount rate
b. encourage banks to provide loans by raising the discount rate
c. restrict bank lending by lowering the discount rate
d. restrict bank lending by raising the discount rate
e. restrict bank lending by lowering the federal funds rate
D
Economics
You might also like to view...
A loaf of bread purchased by one of your instructors would be best described as
A) an intermediate good. B) a financial asset. C) a used good. D) a final good.
Economics
Legal reserve requirements specify that banks must hold a certain percentage of their deposit liabilities
a. in currency only. b. as deposits at regional Federal Reserve Banks only. c. either in currency or as deposits at regional Federal Reserve Banks. d. None of the above
Economics