Prior to 2008, the primary tool used by the Fed to control the money supply was
a. the manipulation of the required reserve ratio banks must hold against their checking deposits.
b. the extension of loans to financial institutions.
c. the buying and selling of stocks and corporate bonds.
d. the buying and selling of U.S. Treasury securities.
D
You might also like to view...
The figure above represents the competitive market for slices of key lime pie. When 60 slices are produced, the marginal cost
A) exceeds the marginal benefit. B) is less than the marginal benefit. C) equals the marginal benefit. D) is not defined. E) equals the deadweight loss on the 60th slice.
The labor supply curve
A) is unit elastic. B) shows the relationship between the wage rate and the quantity of labor supplied. C) shows the quantity of jobs supplied at various wage rates. D) is U-shaped.