a tool used by the FED to control the quantity of money

What will be an ideal response?


open market operations

Economics

You might also like to view...

If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:

a. 1. b. 2. c. 4. d. 9.

Economics

In equilibrium under monopolistic competition: a. firms always earn profits in the short run

b. firms always suffer losses in the short run. c. output is at the socially efficient level in the long run. d. marginal revenue is less than price.

Economics

During recessions, the government tends to run a budget deficit

a. True b. False Indicate whether the statement is true or false

Economics

The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to price, and the CPI does not reflect this and ________ the cost of the market basket

A) change; overestimates B) change; underestimates C) do not change; overestimates D) do not change; underestimates

Economics