If the unemployment rate is 4.5% and the inflation rate is 6%,the Fed will most likely:
A) lower the discount rate.
B) buy bonds.
C) lower the reserve requirement.
D) sell bonds.

Name: If the unemployment rate is 4.5% and the inflation rate is 6%,the Fed will most likely: A) lower the discount rate. B) buy bonds. C) lower the reserve requirement. D) sell bonds.
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Question

Quizplus · Accepted Answer

The Fed is likely to sell bonds to reduce the money supply and combat high inflation, as the inflation rate is at 6%.

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