The most commonly used tool in monetary policy is:
A. changes in required reserve ratios.
B. changes in the discount rate.
C. open market operations.
D. express lending transactions.
Answer: C
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Describe the channels through which an open market purchase of bonds by the Fed affects output in a closed economy
What will be an ideal response?
According to the monetarists,
a. stable growth in the money supply is needed for economic stability. b. aggregate demand is unstable, mostly because of unstable investment demand. c. there is a need for fiscal policies to stabilize output. d. stable money growth is not needed for the economy to be stable.
What is true about dominant strategies in the game in Scenario 13.11?
A) R1 and C1 are dominant strategies. B) R1 and C2 are dominant strategies. C) R2 and C1 are dominant strategies. D) R2 and C2 are dominant strategies. E) There are no dominant strategies.
Positive externalities lead to under supply in a market
Indicate whether the statement is true or false