If the Fed's Policy Is Contractionary,it Will

question 79

Multiple Choice

If the Fed's policy is contractionary,it will

• A)use open market operations to buy Treasury bills.
• B)use open market operations to sell Treasury bills.
• C)lower the discount rate.
• D)lower the reserve requirement.

---

Definitions:

Isoquants

A curve representing all the combinations of factors of production that yield the same level of output.

Isocost Line

A graphical representation in economic theory showing all combinations of inputs which have the same total cost.

Price Of Labor

The cost of hiring workers or the wages that employers pay to their employees.

Price Of Capital

The cost of using capital assets to produce goods and services, often reflected in interest rates or returns required by investors.