When the Federal Open Market Committee (FOMC) directs the Federal Reserve bank of New York to buy or sell bonds it is conducting 7 The interest rate that the Fed charges banks on loans it makes to them is called the 6 The interest rate that banks pay one another when they borrow overnight is called 5 A tight monetary policy entails a 1 in money supply An easy monetary policy entails a 2 in money supply When the Fed buys government securities interest rates 1 If the Fed institutes a policy to reduce inflation, interest rates will most likely 2 During a recession, the objective of the Fed is to shift the money supply curve to the 3 During inflation the objective of the Fed is to shift the money supply curve to the 4 An increase in money supply will 1 interest rates During a recession the Fed will 2 the discount rate During inflation the Fed will 1 the reserve ratio
When the Federal Open Market Committee (FOMC) directs the Federal Reserve bank of New York to buy or sell bonds it is conducting 7 The interest rate that the Fed charges banks on loans it makes to them is called the 6 The interest rate that banks pay one another when they borrow overnight is called 5 A tight monetary policy entails a 1 in money supply An easy monetary policy entails a 2 in money supply When the Fed buys government securities interest rates 1 If the Fed institutes a policy to reduce inflation, interest rates will most likely 2 During a recession, the objective of the Fed is to shift the money supply curve to the 3 During inflation the objective of the Fed is to shift the money supply curve to the 4 An increase in money supply will 1 interest rates During a recession the Fed will 2 the discount rate During inflation the Fed will 1 the reserve ratio
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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can you please fill in all of the blanks I would really appreciate. Thank you!!

Transcribed Image Text:QUESTION 12
Fill in the blanks using the number that corresponds to the correct answer in the word bank below:
1. Decrease
2. increase
3. right
4. left
5. Discount rate
7. Open market operations
6. Federal funds rate
When the Federal Open Market Committee (FOMC) directs the Federal Reserve bank of New York to buy or sell bonds it is conducting 7
The interest rate that the Fed charges banks on loans it makes to them is called the 6
The interest rate that banks pay one another when they borrow overnight is called 5
A tight monetary policy entails a 1
in money supply
An easy monetary policy entails a 2
in money supply
When the Fed buys government securities interest rates 1
If the Fed institutes a policy to reduce inflation, interest rates will most likely 2
During a recession, the objective of the Fed is to shift the money supply curve to the 3
During inflation the objective of the Fed is to shift the money supply curve to the 4
An increase in money supply will 1
interest rates
During a recession the Fed will 2
the discount rate
During inflation the Fed will 1
the reserve ratio
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