Which of the following policy tools is the federal reserve the least likely to use in order to actively change the money suppl

A. Discount rate
B. Discount loans
C. Reserve requirements


Ans: C. Reserve requirements

Economics

You might also like to view...

Negative autocorrelation in the change of a variable implies that

A) the variable contains only negative values. B) the series is not stable. C) an increase in the variable in one period is, on average, associated with a decrease in the next. D) the data is negatively trended.

Economics

The welfare loss associated with the outcome in a competitive oligopoly is:

A. bigger than that of a monopoly. B. smaller than that of a monopoly. C. the same as that of a monopoly. D. the same as that of colluding oligopolists.

Economics

Planned investment is to expected expansion as unplanned investment is to ______.

a. most business cycles b. marginal propensity to save c. unforeseen recession d. rising inventories

Economics

If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:

A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.

Economics