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If the Economy Is in an Inflationary Boom, the Fed

Question 95

Multiple Choice

If the economy is in an inflationary boom, the Fed would most likely


A) increase bank reserves by raising the discount rate.
B) increase bank reserves by buying government securities
C) decrease bank reserves by lowering the discount rate.
D) decrease bank reserves by selling government securities.
E) decrease bank reserves by lowering the legal reserve requirement.

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