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    Principles of Macroeconomics Study Set 13
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    Exam 11: Monetary Policy and the Fed
  5. Question
    Figure 11-1 -Refer to Figure 11-1. If the Fed Wants to Achieve
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Figure 11-1 -Refer to Figure 11-1. If the Fed Wants to Achieve

Question 1

Question 1

Multiple Choice

Figure 11-1 Figure 11-1   -Refer to Figure 11-1. If the Fed wants to achieve the results shown in Panel (b) , it should A)  lower the discount rate. B)  decrease margin requirements. C)  decrease reserve requirements. D)  sell government bonds in the open market.
-Refer to Figure 11-1. If the Fed wants to achieve the results shown in Panel (b) , it should


A) lower the discount rate.
B) decrease margin requirements.
C) decrease reserve requirements.
D) sell government bonds in the open market.

Correct Answer:

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