If the Federal Reserve wants to increase the money supply, it should:
A. increase reserve requirements.
B. increase the interest that it pays on reserves.
C. increase the discount rate.
D. conduct open-market purchases.
Answer: D
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Government redistribution of income in response to individuals free riding on the charity of others is a Pareto superior move
a. True b. False
Scarcity is
A) a situation of shortage after a hurricane. B) a permanent human condition relative to the nearly limitless nature of human desires. C) represented by long lines at stores. D) the same thing as poverty.
The Federal Reserve has
A. no control or influence over any significant macroeconomic variables. B. oversight on issues of the environment C. indirect influence over macroeconomic variables, such as unemployment and inflation through the use of intermediate targets. D. direct control over macroeconomic variables, such as unemployment and inflation.
If the Federal Reserve wished to engage in contractionary monetary policy, it could
A. lower the reserve ratio. B. lower the Federal Funds rate target. C. increase the primary credit rate. D. purchase government debt.