Inflationary pressure is a growing problem for the economy. Therefore, the Federal Reserve decides to pursue a policy to reduce the inflationary pressure. Which policy changes by the Fed would reinforce each other to achieve that objective?

Question

Quizplus · Accepted Answer

Selling government securities and raising the discount rate both work to decrease the money supply, which helps to reduce inflationary pressure.

Inflationary Pressure Is a Growing Problem for the Economy