Limited access

Upgrade to access all content for this subject

Suppose fiscal policy was enacted to prevent a recession, but due to the lagging nature of implementing the policy, the economy was already back to normal.

Which of the following is the most likely action taken by the Federal Reserve?

A

Lower the reserve requirement.

B

Sell bonds on the open market.

C

Decrease the discount rate.

D

Raise taxes.

E

No action would be taken.

Select an assignment template