The US Economy Is Currently Experiencing High Unemployment and Low Inflation

Multiple Choice

The U.S. economy is currently experiencing high unemployment and low inflation. To lessen the unemployment problem, the Federal Reserve could

A) raise the reserve requirement, thereby enabling banks to lend more money, increase the money supply, stimulate spending, and create jobs.
B) lower the discount rate, thereby enabling banks to increase liquidity, lend more money, decrease the money supply, stimulate spending, and create jobs.
C) buy bonds through open market operations, thereby enabling banks to lend more money, increase the money supply, stimulate spending, and create jobs.
D) sell bonds through open market operations, thereby enabling banks to lend more money, increase the money supply, stimulate spending, and create jobs.