If the Fed Fears an Economic Downturn, It Would Be

Multiple Choice

If the Fed fears an economic downturn, it would be most likely to

A) encourage banks to provide loans by lowering the discount rate.
B) encourage banks to provide loans by raising the discount rate.
C) restrict bank lending by lowering the discount rate.
D) restrict bank lending by raising the discount rate.
E) restrict bank lending by lowering the federal funds rate.