Question

In order to manipulate the inflation rate in the United States, the Federal Reserve raises the discount rate. What will occur as a result?
Select ALL that apply.

Group of answer choices


Banks will increase interest rates on loans to each other.


Banks will lower interest rates on loans to each other.


The amount of liquid currency in the economy will decrease.


The amount of liquid currency in the economy will increase.


The inflation rate of the US dollar will decrease.


The inflation rate of the US dollar will increase.

Answer 1

Answer:

A, C, and E.

Explanation:

I just took the test.