AP Macroeconomics › How to find fiscal policy
Which of the following is not a tool used by the Federal Reserve?
Increasing aggregate demand through fiscal policy
Buying and selling bonds via open market operations
Adjusting the discount rate
Adjusting the reserve requirements for banks
All of these tools are used by the Federal Reserve
Which of the following is the most effective fiscal policy if potential GDP exceeds current GDP?
Government spending increases.
The Federal Reserve sells US Treasury bonds.
The tax rate increases.
The Federal Reserve buys US Treasury bonds.