Which of the following statements about Fed management of the money supply is correct?
A) Over the past thirty years, the Fed has always stayed within its pre-announced target rates for growth in M2.
B) The most common tool used by the Fed is a change in the required ratio of reserves to deposits.
C) The rate at which the Fed lends money to banks is called the "Federal Funds rate."
D) The Fed must report each week to Congress on the conduct of monetary policy.
E) none of the above
E
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One of the most important changes in the composition of the labor force in the United States has been
A. the major increase in the number of workers who work full-time out of their own homes. B. the drop in the number of men who only work part-time. C. the pattern of increase in the number of women in the labor force. D. the increase in the ratio of male workers to female workers. E. the major increase in the number of men who work in other countries.
Which of the following would likely take the longest time to enact?
A) Federal government fiscal policy that strives for a balanced budget B) The Fed's lowering of the discount rate C) The Fed's raising of the discount rate D) The Fed's engagement in open market operations
The general message of the folk theorems is:
a. Nash equilibria may not be sustainable over many replications of a game. b. payoffs that are unambiguously preferred to Nash equilibria may be sustainable over many replications of a game. c. credible threats may inhibit the achievement of mutually beneficial outcomes over many replications of a game. d. just plain folk play the best games.
The main technique used by the Fed to alter the excess reserves of commercial banks in order to control the growth of the money stock is
What will be an ideal response?