Which of the following tools does the Fed use to pursue its objectives?
A) It influences short-run and long-run interest rates.
B) It provides loans to new firms and businesses at extremely low rates of interest.
C) It determines the efficient level of government spending.
D) It influences market prices through price ceilings and price floors.
A
Economics
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Policy makers should manage aggregate demand so that it grows in line with the economy's capacity to produce. This task is the realm of
a. growth policy. b. stabilization policy. c. labor policy. d. inflation policy.
Economics
In effect, a consumption tax would put all saving automatically into a tax-advantaged savings account similar to an Individual Retirement Account (IRA)
a. True b. False Indicate whether the statement is true or false
Economics