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If the Fed Wanted to Act to Increase Borrowing by Firms

Question 55

Multiple Choice

If the Fed wanted to act to increase borrowing by firms and consumers and thus hopefully reduce unemployment,it would


A) sell securities.
B) raise the reserve rate.
C) decrease the interest rate on loans to member banks.
D) increase the interest rate on loans to member banks.
E) encourage people to save more and spend less.

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