When the economy is operating at point C, the Federal Reserve may decrease the discount rate to decrease growth. Option C is correct.
What is Federal Reserve?
The Federal Reserve is called the central bank of the U.S. that works on the issue's money.
The Federal Reserve was established in 1913 to address the problem of coordinating currency inflation and the necessity to bail out troubled banks.
At point C, that is shown in the image, it defines that there is the last stage of the economic declining, where the growth of the economy is decreased.
Therefore, option C is correct.
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