If the economy is in decline, and the Federal Reserve wants to encourage banks to lend to consumers, which step will the Fed likely take?

a.Encourage the sale of government securities.
b.Decrease the discount rate.
c.Increase the federal funds rate.
d. Raise the prime rate.

Respuesta :

b.Decrease the discount rate.
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Answer:

B  Decrease the discount rate.

This is correct.