Multiple Choice
If a recessionary GDP gap exists,which of the following sets of policies should the Federal Reserve Board pursue?
A) Sell government securities,lower the discount rate,and lower the required reserve ratio.
B) Sell government securities,lower the discount rate,and raise the required reserve ratio.
C) Buy government securities,raise the discount rate,and lower the required reserve ratio.
D) Buy government securities,lower the discount rate,and lower the required reserve ratio.
E) Buy government securities,lower the discount rate,and raise the required reserve ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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