In response to inflation, the Fed is likely to:
A) increase the discount rate.
B) subsidize loans.
C) buy government securities.
D) increase the debt ceiling.

Name: In response to inflation, the Fed is likely to: A) increase the discount rate. B) subsidize loans. C) buy government securities. D) increase the debt ceiling.
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Question

Quizplus · Accepted Answer

Increasing the discount rate makes borrowing more expensive, which can help reduce inflation by slowing down economic activity.

In Response to Inflation, the Fed Is Likely To