Multiple Choice
Which of the following policies can be adopted by the Fed in order to stimulate an economy in the short run?
A) increasing the market interest rate
B) purchasing U.S. government securities
C) increasing the discount rate
D) increasing the price of consumer goods
E) increasing the required reserve ratio
Correct Answer:

Verified
Correct Answer:
Verified
Q22: A wider use of charge accounts and
Q25: Which statement describes an advantage of money
Q28: The shadow banking system is made up
Q29: In terms of price stability, why would
Q30: The behavior of the M1 velocity of
Q31: After September 2007, 10 cuts over 15
Q36: Other things constant,if the interest rate rises,people
Q58: Suppose an individual can earn 3 percent
Q119: In the long run,if the money supply
Q120: The Fed seeks a target rate of