By conducting monetary policy, the Federal Reserve, a. Changes government spending b. Decreases taxes c. Influences the value of the dollar (by changing the interest rate)
d. None of the above QUESTION 14 What is the primary tool the Fed uses to conduct monetary policy? a. Changes in the discount rate. b. Changes in the reserve requirement. c. Buying and selling government securities.
d. All of the above. QUESTION 15 Open market operations mean that the Fed is buying and selling government securities. This means that if the Fed wants to expand the money supply, it should
a. Buy bonds b. Sell bonds
c. Decrease taxes d. All of the above