The tools of monetary policy are
A) government spending, tax rates, and the required reserve ratio.
B) open market operations, differential between the discount rate and the federal funds rate, and the required reserve ratio.
C) open market operations, differential between the discount rate and the federal funds rate, and tax rates.
D) open market operations, government spending, and the required reserve ratio.
Question 2
The level of output determined by the intersection of the short-run aggregate supply curve and the aggregate demand curve
A) may be above, below, or equal to full-employment output.
B) is always above full-employment output.
C) is always below full-employment output.
D) always corresponds to full-employment output.