During an inflationary period, the Federal Reserve is most likely to
a. lower the discount rate.
b. buy government securities.
c. lower reserve requirements.
d. raise the discount rate.
d. raise the discount rate.
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The natural unemployment rate
A) is a constant figure of about 4 percent. B) fluctuates with the rate of inflation. C) is the unemployment rate that occurs when the economy is at full employment. D) is equal to cyclical unemployment.
During which of the following time periods did inflation remain above 5 percent every year?
A) 1990 through 1999 B) 1973 through 1982 C) 1968 through 1971 D) 1958 through 1962
Refer to the above table. Suppose the price of the good sold is $10 and the marginal factor cost of labor is $700, how many units of labor will the firm hire?
A) 10 B) 11 C) 12 D) 13
As the U.S. price level rises relative to price levels in other countries, what would happen in the U.S.?
a. consumption and net exports would decline b. consumption and net exports would increase c. consumption would increase and net exports would decrease d. consumption would decrease and net exports would increase e. consumption and net exports would remain constant