The government is concerned that the economy is being stifled by low consumer spending. Which course of action should the Federal Reserve take if it wishes to improve the economy?
A) The Federal Reserve should buy securities.
B) The Federal Reserve should sell securities.
C) The Federal Reserve should increase the reserve requirement.
D) The Federal Reserve should increase the discount rate.
E) The Federal Reserve should sell securities and lower the discount rate.
Correct Answer:
Verified
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