Question 20 of 20 Which of the following is not one of the tools of monetary policy? A. The required reserve ratio. B. Government spending. C. The discount rate. D. Open Market Operations. E. All of the above are tools of monetary policy.
Added by Salvador W.
Close
Step 1
The required reserve ratio is a tool of monetary policy. It refers to the percentage of deposits that banks are required to hold as reserves. B. Government spending is not a tool of monetary policy. It is a tool of fiscal policy, which is controlled by the Show more…
Show all steps
Your feedback will help us improve your experience
Oluwadamilola Ameobi and 91 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Name the monetary policy tool being used in each of the following examples. a. The central bank buys government securities from banks: . b. The central bank raises the cost of borrowing money: . c. The central bank changes the amount of money banks must hold from their depositors: .
Aarya B.
Manasvee S.
15. Which of the following makes expansionary Keynesian policy unavailable? a) Crowding out effect b) Inflation c) transactions demand for money d) sovereign debt crisis e) All the above
Jennifer S.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD