The Fed's countercyclical policy tools to eliminate a recession include lowering:

a. the required reserve ratio, cutting the discount 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 discount rate, cutting the discount rate, and raising the margin requirement.
e. the reserve requirement, lowering the discount rate, and buying government bonds on the open market.


e

Economics

You might also like to view...

A major computer software company maintains a technical support center in a rural area and is the only employer in this region

Suppose the firm develops a new software system for managing technical support calls, and the marginal product of labor increases. What happens to the equilibrium outcome in this labor market? A) Labor demand shifts rightward, equilibrium wage and employment levels decline B) Labor demand shifts rightward, equilibrium wage and employment levels increase C) Labor demand curve remains the same, equilibrium wage and employment levels increase D) Labor demand curve remains the same, equilibrium wage and employment do not change E) none of the above

Economics

Vertical contracts between manufacturers and retailers often aim to

a. Prevent the retailers from defeating upstream price discrimination through arbitrage b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the manufacturer's belief of the likely success of his product d. All of the above

Economics

Most economists believe that

a. a monetary policy that achieves price stability will reduce uncertainty and provide the framework for strong economic growth. b. demand stimulus policies will reduce the long-term average rate of unemployment. c. expansionary monetary policy, if persistently followed, will reduce nominal interest rates. d. inflation is primarily the result of large budget deficits and other elements of expansionary fiscal policy.

Economics

Refer to the information provided in Figure 15.2 below to answer the question(s) that follow.  Figure 15.2 Refer to Figure 15.2. From society's viewpoint, the ________ level of output is 50 perms.

A. efficient B. shut down C. minimum D. monopoly

Economics