Which of the following describes what the Fed would do to pursue an expansionary monetary policy?
A) use open market operations to buy Treasury bills
B) use open market operations to sell Treasury bills
C) use discount policy to raise the discount rate
D) raise the reserve requirement
Answer: A
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Which of the following statements is (are) correct? Over the past 20 years, the Federal Reserve
a. has only targeted monetary aggregates. b. has varied between an emphasis on interest rate control and targeting of monetary aggregates. c. has only emphasized control of the interest rate. d. None of the above
Goods whose benefits to society are not diminished as more people consume them and whose benefits cannot be withheld from anyone are
a. impossible since resources are limited b. examples of negative externalities c. public goods d. typically food and other necessities e. provided by free markets to free riders