Answer:
D) inflation.
Explanation:
Inflation is a persistent rise in general price levels. It is when too much money is chasing few goods.
Increasing the discount rate and reserve requirement are forms of contractionary monetary policies.
Contractionary monetary policies are usually embarked upon when the Fed wants to reduce the money supply in the economy.
Reducing the money supply helps reduce the inflationary pressures.
I hope my answer helps you.
