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:

Funeral Director

A professional who arranges and conducts the activities involved in a funeral service, including preparation of the body, and advising families on funeral planning.

Mortician

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Family Doctor

A medical practitioner who provides comprehensive health care to people of all ages, often serving as the first point of consultation.

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