What is the primary tool of monetary policy? required reserve ratio discount rate Temporary Auction Funds Open Market Operations 5...

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Question

Economics

What is the primary tool of monetary policy?
required reserve ratio
discount rate
Temporary Auction Funds
Open Market Operations
5 points Â Â
QUESTION 2
What is the policy goal for unemployment in the U.S.?
zero
zero cyclical unemployment
unemployment equal to inflation rate
low unemployment in urban areas
5 points Â Â
QUESTION 3
What is the policy goal for inflation in the U.S.?
zero
zero inflation on food items
low unemployment that is consistent with full employment levelof unemployment
low inflation in college tuition and other education costs
5 points Â Â
QUESTION 4
Which one of the following types of economic shock could send aneconomy into a recession?
unexpected tax decrease
interest rate cut
financial crisis
decrease in oil prices
5 points Â Â
QUESTION 5
Who controls monetary policy in the U.S.?
The Fed
Congress
President
Supreme Court
5 points Â Â
QUESTION 6
Which one of the following is an example of an expansionarymonetary policy tool?
Buy bonds
Decrease taxes
Increase discount rate
Increase government spending
5 points Â Â
QUESTION 7
Which one of the following is an example of a contractionarymonetary policy tool?
Buy bonds
Increase taxes
Increase required reserve ratio
Decrease government spending

Answer & Explanation Solved by verified expert

3.7 Ratings (547 Votes)

1 The Answer is Open market operations The primary tool of Fed is open market operations to influence the money supply in banking system 2The answer is Zero Cyclical unemployment At zero cyclical See Answer

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		required reserve ratio
		discount rate
		Temporary Auction Funds
		Open Market Operations

		zero
		zero cyclical unemployment
		unemployment equal to inflation rate
		low unemployment in urban areas

		zero
		zero inflation on food items
		low unemployment that is consistent with full employment levelof unemployment
		low inflation in college tuition and other education costs

		unexpected tax decrease
		interest rate cut
		financial crisis
		decrease in oil prices

		Buy bonds
		Decrease taxes
		Increase discount rate
		Increase government spending

		Buy bonds
		Increase taxes
		Increase required reserve ratio
		Decrease government spending