In addition to open market operations and the required reserve ratio, another tool of monetary policy available to the Fed is
A) fiscal policy.
B) tax rates and the progressivity of the income-tax system.
C) government spending and various transfer-payment programs.
D) the difference between the discount rate and the federal funds rate.
D)
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The change in total utility due to a 1-unit change in the quantity consumed is:
a. marginal utility. b. average utility. c. per capita utility. d. total utility. e. the principle of diminishing marginal utility.
Refer to the information. The $40 billion deposit of currency into checking accounts will initially create:
Answer the question on the basis of the following information about a banking system: new currency deposited in the system = $40 billion; legal reserve ratio = 0.20; excess reserves prior to the currency deposit = $0. A. $8 billion of new checkable deposits. B. $10 billion of new checkable deposits. C. $40 billion of new checkable deposits. D. $200 billion of new checkable deposits.