There is an increase in economic activity when the Federal Reserve Board:
A)sells government securities.
B)raises the discount rate.
C)increases reserve requirements.
D)relaxes credit controls.

Question

Quizplus · Accepted Answer

When the Federal Reserve Board relaxes credit controls, it typically means that it is making it easier for banks to lend money. This can lead to an increase in borrowing and spending, which stimulates economic activity. Selling government securities, raising the discount rate, and increasing reserve requirements generally have the opposite effect, as they are measures used to reduce the money supply and slow down economic activity.

There Is an Increase in Economic Activity When the Federal