If the fed buys bonds, price levels will:

With respect to controlling the money supply,the law requires the Fed to take orders froma. the president.b. the Speaker of the House.c. the Secretary of the Treasury.d. no one—the Fed is an independent agency.

The graph shows the demand curve for bank reserves, RD. The current quantity of reserves supplied is $20 billion. The Fed wants to set the federal funds rate at 4 percent a year. Does the Fed conduct an open market operation and if so, does it buy or sell securities? ... 8- Question Viewer 7- Draw a point on the curve that shows the federal funds rate when the quantity of reserves supplied is $20 billion. Label it 1. The Fed wants to set the federal funds rate at 4 percent a year. Draw a supply of reserves curve that achieves the target. Label it. Draw a point to show the new equilibrium federal funds rate. Label it 2. -... Federal funds rate (percent per year) Q Q 6- 5- 4- 3- 2- 1- RD མ] 0 10 20 30 40 50 60 70 80 Reserves on deposit at the Fed (billions of dollars) >>> Draw only the objects specified in the question.

What action did the FOMC take, if any, regarding the level of the fedfunds rate? Why did it make this choice?

When the Fed sells government securities (bonds), the money supply will ______ .         a. first increase and then decrease         b. first decrease and then increase         c. increase d. decrease

Which of the following actions by the Fed would cause interest rates to fall?     A. Raising the discount rate         B. Purchasing bonds from commercial bank     C. Raising the reserve requirement   D. None of the above

1. It is often said that the Federal Reserve Board typically cares more about inflation and less about unemployment than the administration. If this is true, why might presidents often worry about what the Fed might do to interest rates?

When the Central Bank ________ interest rates, bond prices ________. Select one: a. raises; remain the same b. lowers; remain the same c. raises; rise d. lowers; rise

Use the Front Page to answer three questions. FRONT PAGE Fed Raises Key Interest Rate Washington D.C.-The Fed, as expected, raised the target rate on federal funds from 2.25 to 2.5 percent today. Fed chair Jay Powell said the economy appeared "healthy" and "solid" enough to accommodate a small increase in interest rates. The Fed's goal is to keep inflation under control as the economy continues to grow and unemployment falls to historic levels. President Trump reacted immediately to the Fed action, calling it "foolish" and "crazy" - an impediment to stronger growth and still more jobs. Source: News reports of December 19-20, 2018. Instructions: Round your response to two decimal places. a. What was the Fed's target for the fed funds rate in late December 2018? % b. This was (Click to select) from the previous period. c. This rate change would (Click to select) aggregate demand.

The Fed is expected to raise the interest rate to nearly 5% in 2023. What is the impact of this policy on inflation and stock market? a. Inflation increases and stock prices increase b. Inflation increases and stock prices decrease a. Inflation decreases and stock prices increase b. Inflation decreases and stock prices decrease