The Federal Reserve generally uses ________ to implement monetary policy. government spending federal tax policy the reserve requirement ratio the discount rate open market operations
The Federal Reserve generally uses ________ to implement
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government spending
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federal tax policy
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the reserve requirement ratio
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the discount rate
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open market operations
Question 38_________ holds that people form expectations on the basis of all available information.
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The theory behind the
Phillips curve -
Adaptive expectations theory
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Rational expectations theory
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Passive monetary theory
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Monetary neutrality
Question 40The strategic use of monetary policy to _________ is known as active monetary policy.
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reduce
unemployment and increase tax revenue. -
control inflation and encourage saving.
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lower interest rates and promote capital investment.
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counteract
macroeconomic expansions and contractions. -
encourage rational expectations about inflation.
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