The defensive and offensive actions of the Fed differ because offensive actions are designed to:
A. change the current monetary policy while defensive actions are designed to reinforce the current monetary policy.
B. reinforce the current monetary policy while defensive actions are designed to change the current monetary policy.
C. tighten monetary policy and defensive actions are designed to ease monetary policy.
D. ease monetary policy and defensive actions are designed to tighten monetary policy.
Answer: A
You might also like to view...
Suppose that someone deposits $10,000 into a bank. Assuming a reserve requirement ratio of 20 percent, what will be the eventual increase in checking account balances?
What will be an ideal response?
Which policy measure increased the SEC budget to supervise securities markets?
A) Sarbanes-Oxley Act of 2002 B) Global Legal Settlement of 2002 C) Gramm-Leach-Bliley Act of 1999 D) Riegle-Neal Act of 1994
Refer to the above figure. The firm is currently producing at Q2. The firm should
A) reduce production. B) leave production as it is. C) increase production. D) shut down.
In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes
a. compensating differentials. b. the increased recognition that a larger stock of human capital usually leads to higher earnings. c. the decreasing importance of labor unions. d. the increasing importance of international trade.