If the Federal Reserve Board needed to curb inflation,it would most likely __________.

Question

Quizplus · Accepted Answer

To curb inflation, the Federal Reserve Board would most likely raise the discount rate. This would make it more expensive for commercial banks to borrow money and, in turn, reduce the amount of money available for lending to consumers and businesses. This decrease in the money supply would help to decrease inflationary pressures in the economy. Raising taxes would not necessarily address inflation directly, and lowering taxes or increasing government spending would have the opposite effect of increasing inflation.

If the Federal Reserve Board Needed to Curb Inflation,it Would