The Major Problem Facing the Economy Is High Unemployment and Weak

Multiple Choice

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 tend to offset each other in trying to achieve that objective?

A) selling government securities and raising the discount rate
B) selling government securities and raising the reserve ratio
C) buying government securities and raising the discount rate
D) buying government securities and lowering the reserve ratio