The Fed can decrease the federal funds rate by
A. Simply announcing a lower rate because the Fed has direct control of this interest rate.
B. Selling government bonds.
C. Buying government bonds, which causes market interest rates to fall.
D. Changing the money multiplier.
Answer: C
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A technological change ________ and a change in the capital stock ________
A) shifts the productivity curve; shifts the productivity curve B) shifts the productivity curve; creates a movement along the productivity curve C) creates a movement along the productivity curve; shifts the productivity curve D) does not change the productivity curve; creates a movement along the productivity curve E) does not change the productivity curve; shifts the productivity curve
The Trend Projection approach to forecasting is represented by
A) time-series regressions. B) exponential smoothing. C) opinion polls. D) All of the above