What are the Federal Reserve’s monetary policy tools?
If the Federal Reserve Open Market Committee is concerned with increasing inflationary pressures at the same time unemployment is likely to fall, it will likely (buy/sell)______________ bonds.
Why?
If the Federal Reserve Board and the Bank presidents are concerned with increasing inflationary pressures at the same time unemployment is likely to fall, they will likely (increase/decrease) ______________ the discount rate.
Why?
If the Federal Reserve Board members are concerned with increasing inflationary pressures at the same time unemployment is likely to fall and they are considering changing the required reserve ratio, they will likely (increase/decrease) ______________ the required reserve ratio.
Why?
If the Federal Reserve Open Market Committee is concerned that unemployment is increasing while inflation is decreasing, it will likely (sell/purchase) ______________ bonds.
Why?
If the Federal Reserve Board and the Bank presidents are concerned that unemployment is increasing while inflation is decreasing, they will likely (increase/decrease) ______________ the discount rate.
Why?
If Federal Reserve Board members are concerned that unemployment is increasing while inflation is decreasing and they are considering changing the required reserve ratio, they will likely (increase/decrease)______________ the required reserve ratio.
Why?