51. The Fed is conducting expansionary monetary policy if it: A. increases the discount rate, buys bonds, and sets a lower target for the federal funds rate. B. decreases the discount rate and sells bonds. C. sets a lower target for the federal funds rate and buys bonds in the open market. D. increases reserve requirements and buys bonds in the open market. E. buys bonds in the open market and raises the discount rate.
51. The Fed is conducting expansionary monetary policy if it: A. increases the discount rate, buys bonds, and sets a lower target for the federal funds rate. B. decreases the discount rate and sells bonds. C. sets a lower target for the federal funds rate and buys bonds in the open market. D. increases reserve requirements and buys bonds in the open market. E. buys bonds in the open market and raises the discount rate.
Chapter15: Monetary Theory And Policy
Section: Chapter Questions
Problem 2.5P
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