Author Question: To increase the money supply, the Federal Reserve could A) decrease income taxes. B) raise the ... (Read 165 times)

casperchen82 · **on:** Jun 29, 2018

To increase the money supply, the Federal Reserve could

A) decrease income taxes.
B) raise the required reserve ratio.
C) raise the discount rate.
D) lower transfer payments.
E) conduct an open market purchase of Treasury securities.

Question 2

If the Federal Reserve attempts to continue reducing unemployment by manipulating monetary policy, which of the following would you expect to see?

A) The rate of inflation will fall as the Fed tries to reduce the unemployment rate.
B) The Fed's policies will be deflationary.
C) The Fed's policies will be inflationary.
D) The Fed will reduce the natural rate of unemployment.