Once a ________ Is Chosen, the Main Tool the Federal

Multiple Choice

Once a ________ is chosen, the main tool the Federal Reserve uses to change the money supply is ________.

A) federal funds rate; open-market operations
B) federal funds rate; changing the discount rate
C) tax rate; changing the exchange rate
D) number of dollars in circulation; changing the reserve rate
E) discount rate; borrowing money from the federal government