a) contract the money supply
b)sell treasury bills
c)Raise the discount rate
d)buy u.s. government bonds
2007-12-16 08:13:50 · 5 answers · asked by Benjamin F 1 in Social Science ➔ Economics
NONE OF THE ABOVE! The Fed should butt out. The Fed's job is supposed to be to set MONETARY policy, not ECONOMIC policy. This all has gone astray during the last 20 years.
2007-12-16 08:17:44 · answer #1 · answered by Taylor's Dad 5 · 0⤊ 0⤋
Buying bonds is how the fed makes money out of thin air, creating inflation, and "stimulating" the economy.
Best course of action, abolish the fed and return to honest money.
2007-12-16 10:24:05 · answer #2 · answered by freedom_vs_slavery 3 · 0⤊ 0⤋
Typical crackpot US economic policy. The fed should be trying to keep inflation low. They can do this by changing the interest rates thus increasing or reducing demand therefore stimulating the economy to grow or to slow.
2007-12-16 09:53:04 · answer #3 · answered by smaccas 3 · 0⤊ 0⤋
buy u.s govt bonds!
2007-12-16 08:30:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
sell the bill??
2007-12-16 08:17:23 · answer #5 · answered by janesmithdp 3 · 0⤊ 0⤋