The policy lever most commonly used by the Fed is:

A. Changes in the discount rate.
B. Buying and selling bonds.
C. Changes in the reserve requirement.
D. Foreign-exchange operations.


B. Buying and selling bonds.

Economics

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The ______ Model provides a visualization of the problem-solving process

a. Eldridge b. Chain c. Central-satellite d. GO

Economics

In the graph below at a price of P*, the profit maximizing level of output is  

A. Q*. B. zero. C. below Q* but above zero. D. above Q*.

Economics

The regulation of natural monopolies:

A. eliminates deadweight loss. B. always causes the industry to operate at a loss. C. typically takes the form of setting a maximum price that can be charged. D. is common in the tobacco industry.

Economics

The average tax rate required to service the public debt is roughly measured by:

A. the absolute size of the debt. B. the debt as a fraction of the GDP. C. interest on the debt as a percentage of the GDP. D. the ratio of government spending to the GDP.

Economics