The Fed's control of the money supply is not precise because
a. Congress can also make changes to the money supply.
b. there are not always government bonds available for purchase when the Fed wants to perform open-market operations.
c. the Fed does not know where all U.S. currency is located.
d. the amount of money in the economy depends in part on the behavior of depositors and bankers.
d
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Answer the question based on the following data, using year 1 as the base year. All dollars are in billions.
Refer to the above data. Real GDP increased from year 3 to year 4 by approximately:
A.
$68 billion
B.
$75 billion
C.
$98 billion
D.
$215 billion
Under the liquidity premium theory, if investors expect short-term interest rates to remain constant, the yield curve should:
A. be flat. B. have a negative slope. C. have a positive slope. D. have an increasing slope.