In order to change the money supply, the Fed might use all of the following tools except:
A) the discount window.
B) the reserve requirement.
C) open market operations.
D) deficit spending.

Question

Quizplus · Accepted Answer

Deficit spending is a tool used by government to stimulate economic activity and create jobs, but it is not a tool used by the Federal Reserve to change the money supply. The Fed uses the discount window, reserve requirement, and open market operations to control the money supply.

In Order to Change the Money Supply, the Fed Might