The most effective and frequently used tool the Fed has at its disposal to change the economy's money supply is
a. open market operations
b. the discount rate
c. the legal reserve requirement
d. the federal funds rate
e. the margin requirement
A
You might also like to view...
An increase in the supply of bonds leads to
A) an increase in the price of bonds, a decrease in the interest rate, and an increase in aggregate demand. B) an increase in the price of bonds, an increase in the interest rate, and an increase in aggregate demand. C) a decrease in the price of bonds, an increase in the interest rate, and an increase in aggregate demand. D) a decrease in the price of bonds, an increase in the interest rate, and a decrease in aggregate demand.
A union-sponsored television campaign urging U.S. consumers to "Look for the union label" is designed to
A) increase the productivity of union labor. B) increase the derived demand for union labor by shifting consumer preferences in favor of union-made goods. C) raise wages by restricting the supply of union workers. D) remind consumers that if they do not buy union-made goods, unions will strike.