Which of the Following Is a Potential Monetary Policy Instrument

question 102

Multiple Choice

Which of the following is a potential monetary policy instrument for the Fed?

• A) federal funds rate
• B) government budget deficit
• C) income tax rates
• D) profit rates

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Definitions:

Debt Capital

Funds borrowed by an entity that must be repaid over time, typically with interest.

Tight Economies

Economies characterized by limited credit availability, slow economic growth, or high unemployment rates.

Lending Arrangements

Financial agreements where a lender provides funds to a borrower with the expectation that the funds will be repaid, often with interest.

Accounts Receivable Financing

An arrangement where a business sells its outstanding invoices to a third party at a discount in exchange for immediate cash.