Which of the following is the most frequently used tool the Fed uses to control the supply of money?

A. the discount rate
B. the reserve requirements
C. open market operations
D. the 30-year home-mortgage interest rate


Answer: C

Economics

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A) plus; deficit B) minus; deficit C) minus; surplus D) plus; surplus E) divided by; surplus

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Approximately, the real interest rate ________ the inflation rate ________ the nominal interest rate

A) plus; equals B) equals; plus C) equals; minus D) minus; equals

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When a tax is imposed on the suppliers of a good or service, then

A) in general, the producers pay all the tax. B) in general, the consumers pay all the tax. C) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes smaller. D) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes larger.

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What type of market has few sellers?

A) perfect competition B) monopolistic competition C) oligopoly D) monopoly

Economics