The Primary Tools of the Federal Reserve Monetary Policy Include

question 83

Multiple Choice

The primary tools of the Federal Reserve monetary policy include all of the following except

• A) changing the discount rates.
• B) open market operations.
• C) changes in reserve requirements.
• D) changes in the Federal Funds rate.
• E) All of the above are monetary policy tools used by the Fed.

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Definitions:

SSE

Short for Sum of Squared Errors, a measure used in statistics to describe the total deviation of data points from their fitted values in a regression analysis.

Y-intercept

The point where a line, curve, or function crosses the y-axis of a graph.

Dependent Variable

In an experiment or statistical model, the variable that is expected to change as a result of manipulations in the independent variable.

Independent Variable

A factor in a study or simulation that is deliberately altered to see its impact on a variable that depends on it.