Open market operations generally involve A) the Fed making ...

[EY67]

Open market operations generally involve
 
  A) the Fed making discount loans to depository institutions.
  B) the Fed buying and selling common stock in order to affect the liquidity of the stock market.
  C) the Fed buying and selling U.S. government securities.
  D) private investors buying and selling securities directly on exchanges, rather than through brokers.

Question 2

The U.S. National Commission on Fiscal Policy and Reform has recommended changes to government expenditures and taxes which they claim would reduce the increase in the national debt between 2012 and 2020 to 4 trillion rather than 8 trillion.
 
  What are the commission's 5 recommendations?

[cclemon1]

Answer to Question 1

C

Answer to Question 2

1. Eliminate or reduce tax breaks for home mortgage interest, employer health care coverage, the tax exemption for municipal bonds, and preferential tax rates for capital gains and dividend income.
2. Increase the federal government tax on gasoline by 15 cents a gallon.
3. Increase taxes on higher-income households by raising or eliminating the income cap on Social Security payments.
4. Cap federal spending such as farm subsidies and defense spending.
5. Increase the retirement age from 67 to 69 in the future to reduce Social Security expenditures, and significantly increase Medicare premiums.