In addition to open market operations and the required reserve ratio, another tool of monetary policy available to the Fed is
A) fiscal policy.
B) tax rates and the progressivity of the income-tax system.
C) government spending and various transfer-payment programs.
D) the difference between the discount rate and the federal funds rate.
D)
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The consolidated balance sheet of the all banks in Macroland is presented below: AssetsLiabilitiesCurrency$1,000Deposits$1,000Loans$ 900 Based on this balance sheet the banking system of Macroland can be described as a(n) ________ banking system.
A. 100-percent-reserve B. barter C. fractional-reserve D. government-insured
In a period of full employment, if M increases and V remains constant, the most likely result is
a. a decrease in the value of Q. b. an increase in the value of Q. c. a decrease in the value of P. d. an increase in the value of P.
Discuss why the Fed can either both a quantity and a price (interest rate) target unlike other monopolies.
What will be an ideal response?
If regulators disallow price increases requested by a natural monopoly that is currently earning an economic loss, quality of service will
A) increase rapidly. B) likely fall. C) remain unchanged. D) none of the above.