The tools of Fed monetary policy, in order from most frequently to least frequently used, are
a. open market operations, discount rate changes, and legal reserve requirement changes
b. open market operations, legal reserve requirement changes, and discount rate changes
c. discount rate changes, legal reserve requirement changes, and open market operations
d. legal reserve requirement changes, open market operations, and discount rate changes
e. legal reserve requirement changes, discount rate changes, and open market operations
A
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The IMF comprises of 50 member countries including all developed countries, and a few countries of Asia and Latin America
a. True b. False Indicate whether the statement is true or false
Bond prices and bond yields have a(n) ______________ relationship
A) direct B) inverse C) independent D) positive
Suppose that there are two types of houses for sale: those with solid foundations and those with cracked foundations. In all other respects, the two types of houses are identical. Houses with solid foundations are worth $200,000, while those with cracked foundations are worth $200,000 minus the $20,000 to fix the crack, or $180,000. Sellers know which type of house they have, but buyers cannot detect whether the foundation has a crack. Suppose that 80 percent of the houses for sale have a solid foundation and 20 percent of the houses for sale have a cracked foundation. If buyers are risk-neutral and know the that 80 percent of the houses for sale have a solid foundation while 20 percent have a cracked foundation, then the owners of houses with a solid foundation will find that:
A. potential buyers are offering $180,000. B. potential buyers are offering $200,000. C. it is not worthwhile to sell their houses. D. potential buyers are offering more than $200,000.
Suppose that voters in your community pass a one-cent sales tax increase to fund education, knowing full well they will have to forgo other goods they typically consume. This primarily addresses the economic question of:
A) How will each good be produced? B) For whom shall the goods be produced? C) Why will the resources be used to produce goods? D) What goods and services should a society produce?