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Economics Asked by a SnapAndSolve user · about 2 hours ago

fill in the blanks with the words interest rate open market operations discount rate When the central bank...

fill in the blanks with the words
interest rate
open market operations
discount rate
When the central bank buys or sells government bonds to expand or contract the flow of credit in the economy, it is carrying out __________.
Select answer...
When borrowing becomes cheaper or more expensive for households and businesses because policymakers adjust the cost of loans, the tool at work is the __________.
Select answer...
When the Fed changes the cost of short-term loans available to banks, influencing how freely those banks lend to the public, it is using the __________.

Answer


When the central bank buys or sells government bonds to expand or contract the flow of credit in the economy, it is carrying out open market operations.
When borrowing becomes cheaper or more expensive for households and businesses because policymakers adjust the cost of loans, the tool at work is the interest rate.
When the Fed changes the cost of short-term loans available to banks, influencing how freely those banks lend to the public, it is using the discount rate.

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