Appropriate Federal Reserve actions to combat inflation are an increase in the discount rate,an increase in the reserve ratio and the sale of government securities.

Question

Quizplus · Accepted Answer

These actions are often used by the Federal Reserve to combat inflation. Increasing the discount rate and the reserve ratio make it more expensive for banks to borrow money, which can lead to a decrease in the money supply and inflation. Selling government securities can also decrease the money supply and increase interest rates, which can reduce inflationary pressures.

Appropriate Federal Reserve Actions to Combat Inflation Are an Increase