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15 October, 13:12

29) The Federal Reserve usually responds to inflation with which of the following: A) An increase in the discount rate B) A decrease in the discount rate C) The purchase of Treasury Notes D) A decrease in the reserve requirement

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  1. 15 October, 14:12
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    The Fed usually reacts to inflation by initiating "A) An increase in the discount rate", which dissuades the banks from borrowing and thus lending out more money.
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