Which of the following Federal Reserve policy tools is used most often?
a. Open market operations
b. Changing the required reserve ratio
c. Changing the discount rate
d. Changing the prime lending rate
e. Moral suasion
A
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Which of the following shifts the aggregate supply curve rightward? i. The money wage rate rises. ii. Potential GDP increases. iii. Government expenditure on goods and services increases
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Consider the economic impact of Hurricane Florence in 2018. Which of the following statements is correct?
A. Spending toward reconstruction would lead to an increase in GDP. B. Increased government spending on relief efforts in the United States would decrease GDP. C. Damaged buildings and looting would lead to a decrease in GDP. D. U.S. well-being improves the more reconstruction efforts are needed, following the decline in GDP.