Assume that the unemployment rate decreases substantially and that there is very high inflation. Which of the following is a tool of the Fed that is the least likely to be used to influence the economy? O an increase in the discount rate O a decrease in transfers O a decrease in Government spending O an increase in tax rates an increase in the RRR

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter27: Issues In Macroeconomic Theory And Policy
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Assume that the unemployment rate decreases substantially and that there is very
high inflation. Which of the following is a tool of the Fed that is the least likely, to be
used to influence the economy?
an increase in the discount rate
O a decrease in transfers
a decrease in Government spending
an increase in tax rates
an increase in the RRR
Transcribed Image Text:Assume that the unemployment rate decreases substantially and that there is very high inflation. Which of the following is a tool of the Fed that is the least likely, to be used to influence the economy? an increase in the discount rate O a decrease in transfers a decrease in Government spending an increase in tax rates an increase in the RRR
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