Which of the Following Is Not a Policy Instrument of the Fed

question 104

Multiple Choice

Which of the following is not a policy instrument of the Fed?

• A)Changing reserve requirements
• B)Open-market operations
• C)Changing the discount rate
• D)Changing the federal government budget deficit

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price point.

Percentage Increase

A measure of how much a quantity has grown compared to its original number, expressed as a percentage.

Demand Curve

The demand curve is a graphical representation showing the relationship between the quantity of a good consumers are willing to buy and its price.

Fewer Units

A scenario where a smaller quantity of a product is being produced, stocked, or sold, possibly due to lower demand or strategic decision-making.