Question

Which statements describe how the Fed responds to high inflation? Check all that apply.

It charges banks more interest.
It pays banks less interest.
It sells more securities.
It decreases the money supply.
It increases the money supply.

Answer 1

Answer:

• it charges banks more interest

• it sells more securities

• it decreases the money supply

Step-by-step explanation:

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Answer 2

Answer:
• it charges banks more interest
• it sells more securities
• it decreases the money supply

In response to high inflation, the Fed charges banks more interests and pays the banks less interests. It also sells not securities.