A combination of an increase in the discount rate and reserve requirements would:

Name: A combination of an increase in the discount rate and reserve requirements would:
Brand: Quizplus
Rating: 4.7 (45 reviews)

Question

Quizplus · Accepted Answer

Both increasing the discount rate and reserve requirements would decrease the amount of funds available for banks to lend out and thus would decrease the money supply. This policy would be used to slow down economic growth and control inflation. Therefore, the correct answer is B, decrease the money supply.

A Combination of an Increase in the Discount Rate and Reserve