The Fed\'s countercyclical policy during an inflationary boom includes Select on

Question

The Fed's countercyclical policy during an inflationary boom includes Select one: a. raising the required reserve ratio, cutting the discount rate, and selling government bonds on the open market. b. raising the required reserve ratio, cutting the discount rate, and buying government bonds on the open market. c. lowering the required reserve ratio, cutting discount rates, and buying government bonds on the open market. d. raising the required reserve ratio, raising the discount rate, and selling government bonds on the open market. e. raising the required reserve ratio, raising the discount rate, and buying government bonds on the open market.

Explanation / Answer

raising the required reserve ratio, raising the discount rate, and selling government bonds on the open market.

all these three will reduce the demand and availability of money in the market thus reduce the inflation

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