Which of the following statements would be false? The discount rate is
A) an instrument of monetary policy.
B) frequently used as a tool of fiscal policy.
C) regarded as a fine-tuning mechanism.
D) is set by the Fed.

Question

Quizplus · Accepted Answer

The discount rate is not frequently used as a tool of fiscal policy. Fiscal policy is controlled by the government, while the discount rate is set by the Federal Reserve, which is an independent agency. The discount rate is primarily used as an instrument of monetary policy to influence the level of borrowing and lending in the economy.

Which of the Following Statements Would Be False? the Discount