Which of the Following Are Policy Instruments Available to the Fed

question 63

Multiple Choice

Which of the following are policy instruments available to the Fed as it tries to achieve its macroeconomic goals?
I. government expenditure on goods and services and taxes
ii. the government budget deficit or surplus
Iii. changes in the federal funds rate

• A)ii only
• B)iii only
• C)i and ii
• D)i and iii
• E)ii and iii

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Definitions:

E-Mail

Allows information to be sent electronically through a system that delivers the message immediately to any number of recipients.

Markup

The dollar amount added to the product cost to determine its selling price.

Product Cost

The total expense incurred to produce and deliver a product to the market, including raw materials, labor, and overhead costs.

Selling Price

The amount of money for which a product or service is sold to the customer.