Question

Suppose the economy is experiencing a high rate of inflation. Which of the following actions would the Federal Reserve Board take to put the economy back on track?
a) raise the discount rate
b) increase taxes
c) buy more government securities
d) lower the discount rate

Answer 1

"Raise the discount rate" is the one action among the choices given in the question that the Federal Reserve Board would take to put the economy backon track. The correct option among all the options that are given in the question is the first option or option "a". I hope the answer helps you.