The Fed relies on open market operations, which work
a. with the Treasury in creating money to finance bonds.
b. through major stock exchanges to influence bond prices.
c. directly through the nonbank public to change their assets.
d. through the banking system by affecting their reserves.
d
You might also like to view...
What is an isocost line? What is the slope of an isocost line?
What will be an ideal response?
When disposable income is 2,000.
A. savings is zero.
B. consumption is 2,000.
C. consumption equals disposable income.
D. All the choices are true.
When the federal government's budget is in deficit, additional funds are acquired through
A. the sale of Treasury bills, notes, and bonds. B. borrowing from the Federal Reserve System. C. excise taxes on such items as alcohol, tobacco, and firearms. D. government savings accumulated during surplus years.
If a 5 percent decrease in the price of a good produces a 5 percent increase in the quantity demanded, the price elasticity of demand is:
A. perfectly elastic. B. unitary elastic. C. elastic. D. inelastic.