The principle tool the Fed uses to keep the federal funds rate close to the target is:
A. open market operations.
B. the required reserve rate.
C. the IOER rate.
D. discount lending.
Answer: C
You might also like to view...
To think at the margin means to consider
A) how people behave in their own self-interest. B) how a small change in one variable affects another variable. C) how people will decide what to purchase. D) how nothing remains constant over time.
An increase in the money supply will tend to
A. lower interest rates and lower the equilibrium GDP. B. lower interest rates and increase the equilibrium GDP. C. increase interest rates and increase the equilibrium GDP. D. increase interest rates and lower the equilibrium GDP.
Many states charge a 10-cent deposit on every can of soda sold. A purchaser pays an extra 10 cents per can and will get his money back by returning the empty can to a store. This policy encourages recycling by
a. increasing the supply of recyclable materials. b. shifting in the demand curve for canned soda. c. raising the opportunity cost of discarding empty cans. d. taxing the production of canned soda.
Jermaine believes that it is important to maximize the well-being of the worst-off person in society. He believes in the principle called the