If the Fed wanted to use open market operations to reduce interest rates, it would:
A. buy T-bills from banks.
B. sell T-bills to banks.
C. issue T-bills on behalf of banks.
D. grant banks permission to issue T-bills.
Ans: A. buy T-bills from banks.
Economics
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Increased government spending is an example of:
A. expansionary monetary policy. B. contractionary monetary policy. C. contractionary fiscal policy. D. expansionary fiscal policy.
Economics
Suppose the marginal product of labor is MPN = 200 - 0.5Nwhere N is aggregate employment. The aggregate quantity of labor supplied is 100 + 4w, where w is the real wage. The government imposes a minimum wage of 60. What is the quantity of employment?
A. 240 B. 300 C. 280 D. 260
Economics