Which statement is true?
A. The Federal Reserve buys nearly all its United States government securities directly from the Treasury.
B. Open market operations are the buying and selling of United States government securities in the open market by the Federal Reserve.
C. The least important policy tool used by the Federal Reserve to control the money supply is open market operations.
D. None of the choices/statements are true.
B. Open market operations are the buying and selling of United States government securities in the open market by the Federal Reserve.
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The relationship between the quantity of money balances demanded and the interest rate is
A) contractionary monetary policy. B) determined by open market operations. C) negative. D) the reserve requirements.
The difficulty in analyzing oligopolistic behavior arises from the
a. degree of government regulation of the market structure. b. interdependent nature of oligopolistic decisions. c. large number of firms in the industry. d. market power of consumers.
During the course of a bad recession the Fed would probably be doing each of the following, except
A. selling securities on the open market. B. lowering interest rates. C. lowering reserve requirements. D. lowering the discount rate.
What happened to government regulation in the aftermath of the oil shock of 1973?
What will be an ideal response?