The Fed's Countercyclical Policy Tools to Eliminate a Recession Include

question 37

Multiple Choice

The Fed's countercyclical policy tools to eliminate a recession include lowering:

• A) the required reserve ratio, cutting the discount rate, and selling government bonds on the open market.
• B) the required reserve ratio, raising the discount rate, and selling government bonds on the open market.
• C) the required reserve ratio, raising the discount rate, and buying government bonds on the open market.
• D) the discount rate, cutting the discount rate, and raising the margin requirement.
• E) the reserve requirement, lowering the discount rate, and buying government bonds on the open market.

---

Definitions:

Not As Critical

Referring to elements or issues that are less urgent or important in the context of a given discussion or situation.

Gentrification

Gentrification is the process of neighborhood transformation characterized by the renovation of housing, inflow of affluent residents, and displacement of lower-income families and businesses.

Comparison Shop

The practice of comparing prices, features, and quality of products or services from different vendors to make an informed purchasing decision.

Auto Dealerships

Businesses that specialize in selling new or used vehicles to consumers, often providing financing, maintenance, and repair services.