When the economy is operating at point C (in a trough), the fedral reserve may decrease the discount rate to

A) increase growth
B) increase inflation
C) decrease inflation
D) decrease growth

Respuesta :

When the economy is operating at point C in a trough, the federal reserve can decrease the discount rate in order to A. increase growth.

What is Federal Reserve?

It should be noted that the Federal Reserve simply oversees other banks. It's the central bank in a country.

In this case, when the economy is operating at point C in a trough, the federal reserve can decrease the discount rate in order to increase growth.

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