The Fed's policy tools include
A) required reserve ratios, the discount rate, open market operations, and extraordinary crisis measures.
B) holding deposits for the U.S. government, reserve requirements, and the discount rate.
C) setting regulations for lending standards and extraordinary crisis measures.
D) supervision of the banking system and buying and selling commercial banks.
E) required reserve ratios, income tax rates, and open market operations.
A
You might also like to view...
An increase in the demand for labor will ________ wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The use of purchasing power parity prices
A) decreases the real GDP per person statistics published by the International Monetary Fund. B) weakens the validity of cross country comparisons of economic welfare. C) increases the amount by which U.S. GDP is larger than that of any other nation. D) accounts for differences in the prices of the same goods in different countries when measuring real GDP.
If AE < Y, which of the following will NOT occur?
A) inventories will decline B) actual investment will be more than planned investment C) employment will decline D) GDP will decline
Which of the following situations would cause a period of stagflation at a later point in time?
A. A recessionary gap B. A reduction in investment spending C. An increase in technological development D. An inflationary gap