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Recall a time when the economy was very strong for several years, and business was booming. During that time, however, prices began to increase, and
Recall a time when the economy was very strong for several years, and business was booming. During that time, however, prices began to increase, and there was fear that the increasemight continuefor an extended period of time. Which of the following actions could the Fed have taken to counteract the increasing prices?
a.Decrease overall interest rates.b.Increase the overall supply of money.c.Lower the reserve requirement.d.Raise the discount rate.
e.Buy government bonds.
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