All of the following are tools available to the Fed for controlling the money supply except

A. The discount rate.
B. Open market operations.
C. The reserve requirement.
D. Taxes.

Answer: D

Economics

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Economics

"Expansionary fiscal policy is always 100 percent effective when the short-run aggregate supply curve is horizontal." Is this statement TRUE?

A) yes, because theoretically nothing else can offset the effects of fiscal policy B) yes, when the long-run aggregate supply curve is horizontal too C) no, because crowding out could take place D) no, because the increased spending may cause the price level to increase

Economics