Author Question: The three main monetary policy tools used by the Federal Reserve to manage the money supply are ... (Read 176 times)

frankwu · **on:** Jun 29, 2018

The three main monetary policy tools used by the Federal Reserve to manage the money supply are

A) interest rates, tax rates, and government spending.
B) open market operations, discount policy, and reserve requirements.
C) tax rates, government purchases, and government transfer payments.
D) open market operations, the exchange rate of the dollar against foreign currencies, and government purchases.

Question 2

What are menu costs?

A) the cost to a household of borrowing money when there is deflation
B) the opportunity cost of dining in a restaurant instead of at home
C) the costs to a firm of changing prices
D) the full list of a firm's costs of production