The Most Used Monetary Policy Instrument Used by the Fed

question 121

Multiple Choice

The most used monetary policy instrument used by the Fed is

• A)open market operations
• B)changing the discount rate
• C)changing the reserve requirement
• D)none of the above

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Definitions:

Rising Wages

An economic condition where the average wage level in an economy increases over time, potentially affecting inflation and purchasing power.

GDP

Gross Domestic Product (GDP) measures the total economic output of a country within a given time period, reflecting the overall health of its economy.

Health Care Spending

The total amount of money spent on health services, medications, and health-related research and public health initiatives within a country.

Medicare

A federal program in the United States that provides health insurance to people over the age of 65 and to certain younger people with disabilities.