Which of the following is a monetary policy tool that is meant to reduce interest rates and stimulate the economy?

Faced with an adverse supply shock, if the central bank wants to stabilize output, it should

A. decrease the money supply. B. increase the money supply. C. decrease government spending. D. increase government spending.

The belief that bank failures were regularly caused by fraud or the lack of sufficient bank capital explains, in part, the passage of

A) the National Bank Charter Amendments of 1918. B) the Garn-St. Germain Act of 1982. C) the National Bank Act of 1863. D) Federal Reserve Act of 1913.