"What action is the Federal Reserve MOST likely to take if it is worried about increasing inflation due to extremely rapid economic expansion?"

Increase reserve requirements

Explanation:

Reserve requirements refer to the proportion of deposits that banks are required to leave with the Fed for safekeeping and the protections of depositors.

This amount reduces the amount of money that the banks can give out as loans and so is quite useful in monetary policy.

If the Fed is worried about increasing inflation due to extremely rapid economic expansion, the way to rein this in is to embark on a contractionary monetary policy.

One way to do so is to increase the reserve requirement which would mean that banks have to hold more money. Should this happen then the money supply in the economy would decrease which would ideally decrease inflation and reduce the funds available for both investment and consumption which would lead to a decrease in economic activity as well.

answer; /// i believe the correct answer is (all of the above);