The Federal Reserve System regulates the money supply primarily by
A. controlling the production of coins at the U.S. mint.
B. altering the reserve requirements of commercial banks and thereby the ability of banks to make loans.
C. restricting the issuance of Federal Reserve Notes because paper money is the largest portion of the money supply.
D. altering the reserves of commercial banks, largely through sales and purchases of government bonds.
Answer: D
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The main result of the monetarist model is that
A) the economy is slow to adjust to sticky wages and prices. B) workers and firms have rational expectations. C) the quantity of money should be increased at a constant rate. D) productivity shocks explain fluctuations in real GDP.
Discuss the two different methods the Bureau of Economic Analysis (BEA) uses to place current values on foreign direct investments
What will be an ideal response?