The term "business fluctuations" refers to:

Which of the following policies can be adopted by the Fed in order to stimulate an economy in the short run?

a. Increase the market interest rate b. Purchase U.S. government securities c. Increase the discount rate d. Increase the price of consumer goods e. Increase the required reserve ratio

During the early 1930s there were a number of bank failures in the United States. What did this do to the money supply? The New York Federal Reserve Bank advocated open market purchases. Would these purchases have reversed the change in the money supply and helped banks? Explain