Which of the following is a tool used by the Fed in the conduct of monetary policy?
A) changes in the prime rate
B) issuing new government bonds and retiring old ones
C) buying and selling corporate bonds
D) buying and selling federal government bonds
Ans: D) buying and selling federal government bonds
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Would a shift in demand have a greater effect on the percentage change in equilibrium quantity for a straight-line supply curve that intersects the quantity axis or the price axis?
A. Price axis because supply will be more elastic. B. Quantity axis because supply will be less elastic. C. Quantity axis because supply will be more elastic. D. Price axis because supply will be less elastic. References
Identify the correct statement
a. During a recession, investment decreases while consumption increases. b. During a recession, investment increases while consumption decreases. c. During a recession, investment is constant while consumption increases. d. Annual variations in investment are larger than annual variations in consumption. e. Annual variations in investment are smaller than annual variations in consumption.