Choose the statements that identify how the federal reserve controls monetary policy.
a) fina...
Business, 02.11.2019 05:31 nathan1010
Choose the statements that identify how the federal reserve controls monetary policy.
a) financial institutions must keep a percentage of deposits on hand.
b) the federal reserve can buy or sell government bonds in the open market.
c) the federal reserve pays institutions interests on excess reserves.
d) taxes may be increased to discourage spending and bring prices down.
e) a "discount rate" is applied to loans taken out by institutions with the federal reserve.
f) taxes may be decreased to encourage spending and lower unemployment.
g) government spending will be increased to encourage job growth and consumption.
Answers: 1
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