Which of the following is not a tool of monetary policy?
A)open market operations
B)reserve requirements
C)changing the discount rate
D)increasing the deficit

Name: Which of the following is not a tool of monetary policy? A)open market operations B)reserve requirements C)changing the discount rate D)increasing the deficit
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Question

Quizplus · Accepted Answer

Increasing the deficit is a tool of fiscal policy, not monetary policy. Monetary policy focuses on central bank actions to control the money supply and interest rates.

Which of the Following Is Not a Tool of Monetary