Which of the following tools of monetary policy is considered the most important on a day-to- day basis?
A. The discount rate.
B. The reserve ratio.
C. Open-market operations.
D. Paying interest on reserves.
C. Open-market operations.
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In both monopolistic competition and perfect competition,
A) firms sell identical products. B) there is easy entry and exit. C) firms are price takers. D) firms face horizontal demand curves. E) the marginal revenue curve and the demand curve are the same.
A private equity firm is a group of investors that buys up the publicly traded stock of a large corporation and then takes the corporation private.
Answer the following statement true (T) or false (F)
If interest rates, prices, and output are all rising, then according to the Keynesian model, these changes must be caused by
a. an increase in aggregate supply. b. a shift to the right of the LM curve. c. a shift to the right of the LM curve. d. a shift up in the IS curve. e. none of the above.
The marginal propensity to save plus the marginal propensity to consume always equals 1
a. True b. False Indicate whether the statement is true or false