If severe demand-pull inflation was occurring in the economy,proper government policies would involve a government:
A) deficit,the purchase of securities in the open market,a higher discount rate,and higher reserve requirements.
B) deficit,the sale of securities in the open market,a higher discount rate,and lower reserve requirements.
C) surplus,the sale of securities in the open market,a higher discount rate,and higher reserve requirements.
D) surplus,the purchase of securities in the open market,a lower discount rate,and lower reserve requirements.
Correct Answer:
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