If the Fed was to use all of its three most common tools to ...

[APUS57]

If the Fed was to use all of its three most common tools to increase the money supply, it would:
 a. buy bonds, reduce the discount rate, and reduce reserve requirements.
  b. sell bonds, reduce the discount rate, and reduce reserve requirements.
  c. sell bonds, reduce the discount rate, and increase reserve requirements.
  d. sell bonds, increase the discount rate, and increase reserve requirements.

Question 2

If the actual unemployment rate is below the natural rate of unemployment, then the actual inflation rate must exceed the expected inflation rate, and the economy will be operating along the short-run Phillips curve.
 a. True
  b. False
  Indicate whether the statement is true or false

[alexisweber49]

Answer to Question 1

a

Answer to Question 2

True

[APUS57]

Correct answers!

[alexisweber49]

Great! Please up vote