What happens when the Fed aims to change interest rates?

A. It asks Congress to legislate new interest rates.
B. It buys or sells dollars on the foreign exchange market to achieve the desired rate.
C. It buys or sells government bonds on the open market to achieve the desired rate.
D. It announces a new discount interest rate.


Answer: C

Economics

You might also like to view...

If the United States government lowers the income taxes on the wealthiest Americans, while decreasing welfare payments to the poorest Americans, the result will likely be an _____ in efficiency and a ________ in equality in the United States.

Fill in the blank(s) with the appropriate word(s).

Economics

Define opportunity cost. Given the definition of opportunity cost, explain what is meant by the statement "There is no such thing as a free lunch."

What will be an ideal response?

Economics

A recession can be expected to reduce inflation in the economy if the recession is caused by a(n)

a. increase in aggregate demand. b. increase in aggregate supply. c. decrease in aggregate demand. d. decrease in aggregate supply.

Economics

Refer to the information provided in Table 2.1 below to answer the following question(s). Table 2.1?KrystalMarkWriting Poems812Writing TV Commercials24Refer to Table 2.1. Which of the following statements is true?

A. Mark has a comparative advantage in both writing TV commercials and writing poems. B. Krystal has a comparative advantage in writing TV commercials, and Mark has a comparative advantage in writing poems. C. Krystal has a comparative advantage in both writing TV commercials and writing poems. D. Mark has a comparative advantage in writing TV commercials, and Krystal has a comparative advantage in writing poems.

Economics