Multiple Choice
Assume the Fed's target for unemployment is 4% to 5%, and its target for inflation is 2% to 3%. If the unemployment rate is 4.5% and the inflation rate is 6%, the Federal Reserve will most likely
A) lower the discount rate.
B) buy bonds.
C) lower the reserve requirement.
D) sell bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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