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 reinforce each other to achieve that objective?

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