3 years ago

If inflation begins to rise rapidly, which step is the Federal Reserve likely to take?

1 answer:

6 0

The answer is: I<span>ncrease the reserve requirement.
Reserve requirement refers to the minimum amount of fund that must be held by each commercial banks in the nations.
Increasing reserve requirement will encourage the banks to increase customer's saving, which will lower the amount of money spread in the market and will lower the inflation</span>

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