Which of the Following Is NOT a Tool Used by the Fed

question 252

Multiple Choice

Which of the following is NOT a tool used by the Fed to implement monetary policy?

• A)Printing Federal Reserve notes and minting coins
• B)The discount rate
• C)The reserve requirement
• D)Open market operations

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Definitions:

Short Run

A period in which at least one factor of production is fixed, affecting the ability of a business to increase output in response to increased demand.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as production increases.

Average Total Cost (ATC)

The total cost of production (fixed and variable costs) divided by the total quantity of output produced.

Marginal Cost (MC)

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.