The U.S.Fed "sets" interest rates by
A) announcing a desired discount rate and then attempting to keep the federal funds rate two percentage points above it
B) announcing a desired monetary growth rate designed to keep inflation stable
C) buying or selling Treasury bills
D) announcing its intentions far in advance since transparency allows financial markets to adjust before any action is taken
E) trying to keep bank reserves stable
Correct Answer:
Verified
Q1: When conducting expansionary monetary policy, central banks
Q2: An appropriate policy response by a central
Q4: Many economists believe that
A)most short-term stabilization of
Q5: Monetary policy is best conducted by
A)focusing on
Q6: If a central bank wants to avoid
Q7: Which of the following is NOT a
Q8: The U.S.Federal Reserve's Open Market Committee (the
Q9: If a central bank is uncertain about
Q10: The U.S.Fed can most effectively achieve an
Q11: Central banks generally conduct their monetary policy
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