Suppose the Fed Wishes to Make Only a Small Change

question 142

Multiple Choice

Suppose the Fed wishes to make only a small change in the money supply.Which of its policy tools is it most likely to use?

• A)the prime interest rate
• B)loans made to the public
• C)Fed Fund Rate
• D)open market operations
• E)the required reserve ratio

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Definitions:

Employment Law

A branch of law that deals with the rights and obligations of working individuals, including issues related to hiring, dismissal, work conditions, and discrimination.

Collective Bargaining

The process through which unions negotiate with employers on behalf of their members to establish employment contracts, covering wages, hours, benefits, and working conditions.

NLRA

The National Labor Relations Act, a foundational law in the United States that protects employees' rights to organize and engage in collective bargaining.

Injunction

A legal order issued by a court that compels a party to do or refrain from doing specific acts.