Open-Market Operations Include

question 78

Multiple Choice

Open-market operations include

• A) changes in the reserve ratio.
• B) repos and reverse repos.
• C) paying interest on excess reserves held at Federal Reserve Banks.
• D) changes in the discount rate.

---

Definitions:

Policymakers

Individuals or groups responsible for making and implementing policies, especially in government and legislative contexts.

Natural-rate Hypothesis

The theory suggesting that there is a specific level of unemployment that exists in an economy that is not eliminated by monetary policy in the long run.

Favorable Supply Shock

An unexpected event that suddenly increases the supply of a product or service, resulting in decreased prices and increased quantity.

Short-run Phillips Curve

The short-run Phillips Curve represents the inverse relationship between inflation and unemployment in an economy over a short-term period.