If the Fed Wants to Shift Toward a More Expansionary

question 146

Multiple Choice

If the Fed wants to shift toward a more expansionary policy, it often announces that it is going to change the federal funds interest rate. The Fed controls the federal funds interest rate

• A) by imposing legal restrictions that prohibit exchanges at interest rates other than the ones designated by the Fed.
• B) by having the U.S. Treasury fix this interest rate
• C) through its policy of open market operations.
• D) by altering the size of the federal budget deficit or surplus.

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Definitions:

Blank Report Button

An interface element in database software that creates a new, empty report template for custom data presentation.

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An editing mode in database software that allows users to create and modify the layout and structure of reports before printing or displaying them.

Report View

A feature in database and application software that allows users to view, and sometimes interact with, the data in a report format.

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A feature that allows users to view a document or page exactly how it will appear when printed, often used to make adjustments before final printing.