If the Federal Reserve wanted to slow the rate of economic growth,it would most likely __________.

Question

Quizplus · Accepted Answer

The Federal Reserve can control the supply of money in the economy by changing the discount rate, which is the rate at which banks can borrow money from the Fed. If the Fed wants to slow down economic growth, it can increase the discount rate, which makes it more expensive for banks to borrow money from the Fed. This can lead to higher interest rates for consumers and businesses, and therefore slower economic growth. Lowering the discount rate, on the other hand, would make it cheaper for banks to borrow money from the Fed and could stimulate economic growth. Encouraging the president to lower taxes or increasing the unemployment rate are not effective ways for the Fed to slow down economic growth.

If the Federal Reserve Wanted to Slow the Rate of Economic