Which of the Following Tools Is NOT a Policy Tool

question 5

Multiple Choice

Which of the following tools is NOT a policy tool of the Fed?

• A) last resort loans
• B) the tax rate on interest income
• C) the required reserve ratio
• D) open market operations

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Definitions:

Dominant Strategies

Strategies in game theory that are preferable regardless of the opponent's actions, leading to a stable solution.

Prisoners' Dilemma Situations

A scenario in game theory where individuals acting in their own self-interest produce a worse outcome for the group than if they had cooperated.

Cooperative Outcomes

Results of collaborative efforts among various parties that are mutually beneficial and aim towards shared goals or interests.

Payoff Matrix

A table that displays the potential outcomes or rewards for different actions taken by players in a strategic game.