If the inflation rate is rising,which one of the following would the Fed need to do to reduce the inflation rate?
A) Lower margin requirements.
B) Lower reserve requirements.
C) Encourage more discount borrowing.
D) Increase the federal funds rate.

Question

Quizplus · Accepted Answer

A higher federal funds rate will cause banks to restrict lending, reducing the money supply and the price level.

If the Inflation Rate Is Rising,which One of the Following