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The Federal Reserve can tighten and slow the growth of the economy, resulting in higher interest rates by taking the following actions: 1)Purchasing bonds in
The Federal Reserve can tighten and slow the growth of the economy, resulting in higher interest rates by taking the following actions: 1)Purchasing bonds in the open market 2)Increasing the reserve requirement 3)Decreasing the discount rate on borrowings to banks 4)Selling bonds in the open market - normalizing the balance sheet
a. 1 and 2 b. 2,3, and 4 c. 2 and 4 d. 4 only
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