Explain the? Fed's policy tools and briefly describe how each works. The Fed uses its policy tools to? _______. 2. By increasing the required reserve? ratio, the Fed forces banks to hold a? _______ quantity of monetary base and the interest rate? _______.
1.
A. influence the interest rate and regulate the amount of money circulating in the United States by adjusting the reserves of the banking system
B. keep the government budget debt under? $20 trillion by adjusting loans to Congress
C. influence the exchange rate and the? country's trade balance by adjusting the interest rate
D. regulate the amount of money circulating in the United States by printing enough money each year for the purchase of consumer goods and services
2.
A. larger; falls
B. larger; rises
C. smaller; rises
D. smaller; falls
1. Answer: A. influence the interest rate and regulate the amount of money circulating in the United States by adjusting the reserves of the banking system
2. Answer: B. larger; rises
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A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
In 2011, Standard & Poor's (S&P) changed its rating on U.S. Treasury bonds from ________ based on the state of the federal government's budget deficit
A) "A" to "D" B) "AAA" to "AA+" C) "A+" to "B+" D) "A" to "AAA"
Ben's Peanut Shoppe suffers a short-run loss. Ben will not choose to shut down if
A) his Shoppe's total revenue exceeds his capital costs. B) his Shoppe's total revenue exceeds his implicit costs. C) his Shoppe's total revenue exceeds his fixed cost. D) his Shoppe's total revenue exceeds his variable cost.
Because _____ has two official languages (French and English), it is one of the world's leaders in multiculturalism and government policy
a. Belgium b. Canada c. France d. Ghana