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Which of the following actions would the Federal Reserve most likely take to reduce unemployment?

A. Raise the discount rate
B. Increase the reserve requirement
C. Restrict the money supply
D. Buy government securities

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Joshua Stredder
Joshua StredderLv10
16 Mar 2021

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Related questions

If inflation begins to rise rapidly, which step is the Federal Reserve likely to take? 
A. Decrease the federal funds rate
B. Increase the reserve requirement 
C. Buy government securities 
D. Decrease the discount rate

Which of the following actions is most likely to result in an increase in the money supply

a. Fed purchases of government securities.

b. an increase in the required reserve ratio.

c. an increase in the discount rate.

d. none of the above.

Which of the following actions by the federal reserve would reduce the money supply:

 

a. an open market purchase of government bonds. 

b. a reduction in the banks' reserve requirements. 

c. an increase in the interest paid on reserves.

d. a decrease in the discount rate of Fed lending. 

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