A. Suppose that a speculative bubble appears in the stock market that leads the Federal Reserve to feel that speculators
Posted: Sun Jun 05, 2022 4:25 pm
A. Suppose that a speculative bubble appears in the stock market
that leads the Federal Reserve to feel that speculators are
behaving in an irrationally exuberant manner. To put a damper on
speculation, the Federal Reserve would most likely
1.enact dynamic monetary policy by purchasing government securities
on the open market
2, decrease the required reserve ratio on checkable deposits
3, increase in the margin requirement
4, initiate defensive monetary policy by engaging in repurchase
agreements with banks
B.During the Great Recession of 2007-2009 and the COVID-19
pandemic, the Federal Reserve adopted an expansionary monetary
policy to stimulate the economy by doing all of the
following except
increasing loans to banks through the discount window
lowering the federal funds rate
purchasing securities on the open market
cutting taxes to encourage business investment spending
that leads the Federal Reserve to feel that speculators are
behaving in an irrationally exuberant manner. To put a damper on
speculation, the Federal Reserve would most likely
1.enact dynamic monetary policy by purchasing government securities
on the open market
2, decrease the required reserve ratio on checkable deposits
3, increase in the margin requirement
4, initiate defensive monetary policy by engaging in repurchase
agreements with banks
B.During the Great Recession of 2007-2009 and the COVID-19
pandemic, the Federal Reserve adopted an expansionary monetary
policy to stimulate the economy by doing all of the
following except
increasing loans to banks through the discount window
lowering the federal funds rate
purchasing securities on the open market
cutting taxes to encourage business investment spending