Which of the following does the Fed use most frequently to conduct monetary policy after the recession of 2008- 2009, which during the normal time? The reserve requirement. B) D) C) Open market operations. OA) The reserve requirement; The exchange rate. B) Open market operations; The discount rate. C) Interest rate on banks' reserves; Open market operations. D) The discount rate; The reserve requirement.
Which of the following does the Fed use most frequently to conduct monetary policy after the recession of 2008- 2009, which during the normal time? The reserve requirement. B) D) C) Open market operations. OA) The reserve requirement; The exchange rate. B) Open market operations; The discount rate. C) Interest rate on banks' reserves; Open market operations. D) The discount rate; The reserve requirement.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Modern Macroeconomics And Monetary Policy
Section: Chapter Questions
Problem 14CQ
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Solution part A and B
![Which of the following does the Fed use most frequently to conduct monetary policy after the recession of 2008-
2009, which during the normal time?
The reserve requirement.
B)
D)
C) Open market operations.
A) The reserve requirement; The exchange rate.
B) Open market operations; The discount rate.
C) Interest rate on banks' reserves; Open market operations.
D) The discount rate; The reserve requirement.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f11a89c-c510-4815-a0f4-42037b61b5f2%2Ff49a24d7-3575-4c55-ac90-fd4465761889%2Fx2f2ftq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following does the Fed use most frequently to conduct monetary policy after the recession of 2008-
2009, which during the normal time?
The reserve requirement.
B)
D)
C) Open market operations.
A) The reserve requirement; The exchange rate.
B) Open market operations; The discount rate.
C) Interest rate on banks' reserves; Open market operations.
D) The discount rate; The reserve requirement.
![The Fed engages in open market operations by:
OA) raising or lowering the reserve requirement.
B) buying or selling government bonds.
C) raising or lowering the discount rate.
D) closing insolvent banks.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f11a89c-c510-4815-a0f4-42037b61b5f2%2Ff49a24d7-3575-4c55-ac90-fd4465761889%2Fffohj8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Fed engages in open market operations by:
OA) raising or lowering the reserve requirement.
B) buying or selling government bonds.
C) raising or lowering the discount rate.
D) closing insolvent banks.
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