To counter inflation the Federal Reserve makes __________ available.
A.
less money
B.
more money
C.
lower interest rates
D.
more government loans

Question

To counter inflation the Federal Reserve makes __________ available.
A.
less money
B.
more money
C.
lower interest rates
D.
more government loans

dantefemboy · Answer

@TheSmartOne @confluxepic @AnswerMyQuestions

confluxepic · Answer

What do you think it is. @DanteFemboy

confluxepic · Answer

http://www.answers.com/Q/What_does_the_Federal_Reserve_do_to_fight_inflation

dantefemboy · Answer

Yeah I don't know this one at all.

confluxepic · Answer

Yeah. This one is tough.

dantefemboy · Answer

So C?

confluxepic · Answer

Yes.

confluxepic · Answer

The Federal Reserve is in charge of the money supply. They can increase it or decrease it by three methods.
Each bank maybe required to adjust their Reserves on hand.
Discount Rate maybe adjusted, the rate the fed pays banks for loans banks have that they wish to sell to the Fed. Usually a lower rate, so banks want more of them.
Open Market Operations where the Fed sells treasury bills or bonds.

dantefemboy · Answer

Thanks~

confluxepic · Answer

You're welcome.

dantefemboy · Answer

It was A. >.<

confluxepic · Answer

What course is this and why is it so hard.