The Fed's countercyclical policy tools to eliminate a recession include lowering:
A. the discount rate, raising the Fed funds rate, and selling government bonds on the open market.
B. the required reserve ratio, raising the discount rate, and selling government bonds on the open market.
C. the required reserve ratio, raising the discount rate, and buying government bonds on the open market.
D. the required reserve ratio, lowering the discount rate, and buying government bonds on the open market.
Answer: D
You might also like to view...
In which of the following market structures is a firm most likely to advertise extensively and fear entry of new firms?
a. perfect competition b. pure monopoly c. monopolistic competition d. oligopoly e. both perfect competition and monopolistic competition
A bank's balance sheet can show a negative net worth and yet its income statement can show a profit for the year
a. True b. False
If the social cost is greater than the private cost in a particular market, the socially optimal equilibrium will be at a quantity:
A. greater than the private level. B. equal to the private level. C. greater than or less than the private level, depending on the size of the external costs. D. less than the private level.
One explanation for the existence of an increasing-cost industry is:
A. perfectly elastic long-run supply schedules are observed in the industry. B. firms produce beyond the point of minimum long-run average total costs. C. as the industry expands, input prices are bid up for some factor of production. D. increasing marginal returns to labor occur.