During a period of hyperinflation the Fed would probably be doing each of the following except

Question

Quizplus · Accepted Answer

During a period of hyperinflation, the Fed's main concern would be to combat inflation by reducing the money supply. Lowering reserve requirements would increase the money supply, so it would not be a strategy that the Fed would use. The other choices (raising the discount rate, raising interest rates, and selling securities on the open market) would help to reduce the money supply and combat inflation, making them more likely strategies for the Fed to use during hyperinflation.

During a Period of Hyperinflation the Fed Would Probably Be