One factor limiting the Federal Reserve's ability to use monetary policy to stimulate the economy is that the Federal Reserve has
A. tools to lower interest rates, but they do not work at interest rates below 0%.
B. tools to lower interest rates, but they do not work at interest rates below 10%.
C. no tools at its disposal to lower interest rates.
D. tools to lower interest rates, but they do not work at interest rates above 10%.
Answer: A
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A) square of the sum B) sum C) product D) square root of the sum
Economists use ________ to forecast economic activity and to evaluate policy options
A) macroeconometric models B) educated guesses C) cost-benefit analysis D) constrained discretion
Taking advantage of the built-in-loophole in emission taxes implies
a. opportunity to save on taxes by reducing emissions. b. opportunity to avoid taxes even without cutting emissions. c. opportunity to increase emission by paying more tax. d. opportunity to pay less by increasing emission.
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a. it sells Treasury securities, which increases the money supply. b. it sells Treasury securities, which decreases the money supply. c. it auctions term loans, which increases the money supply. d. it auctions term loans, which decreases the money supply.