If the Fed wants to increase bank reserves, it can:
A. Buy bonds.
B. Raise the discount rate.
C. Raise the reserve requirement.
D. Sell bonds.
A. Buy bonds.
You might also like to view...
Many believe that fairness calls for higher income taxes on the wealthy. Using one of the “Ideas for Beyond the Final Exam,” explain how higher taxes on the wealthy will affect output.
What will be an ideal response?
Government in the United States spends more as a percentage of GDP than in most other industrialized nations.
Answer the following statement true (T) or false (F)
The "Four Freedoms" are an important goal of the
A) Treaty of Rome. B) Single European Act. C) European Monetary System. D) Maastricht Treaty. E) European Free Trade Area.
When the housing bubble occurred it can be attributed to all of the following except:
A. people expected housing prices to continue to rise. B. it became easier to leverage more of a home's value, putting buyers more into debt. C. the seller of the mortgage had lost incentive to properly assess the risk. D. homeowners lack of confidence in the institutions who made the loan to them.