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Suppose that the Fed judges inflation to be the most significant problem in the economy and that it wishes to employ all three of its policy instruments, then the Fed will engage inA.open market sales, increasing the reserve requirement, and increasing the discount rate.B.open market sales, decreasing the reserve requirement, and increasing the discount rate.C.open market purchase, increasing the reserve requirement, and decreasing the discount rate.D.open market purchase, increasing the reserve requirement, and increasing the discount rate.
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