Author Question: The Fed's countercyclical policy tools to eliminate a recession include lowering: a. the required ... (Read 33 times)

jwb375 · **on:** Jun 30, 2018

The Fed's countercyclical policy tools to eliminate a recession include lowering:
a. the required reserve ratio, cutting the discount rate, and selling government bonds on the open market.
b. the required reserve ratio, raising the discount rate, and selling government bonds on the open market.
c. the required reserve ratio, raising the discount rate, and buying government bonds on the open market.
d. the discount rate, cutting the discount rate, and raising the margin requirement.
e. the reserve requirement, lowering the discount rate, and buying government bonds on the open market.

Question 2

Which of the following actions by the Fed would increase the money supply?
a. Increasing the required reserve ratio.
b. Selling government bonds in the open market.
c. Increasing the discount rate.
d. Reducing the required reserve ratio.