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

Question

Quizplus · Accepted Answer

Deficit spending is not a tool used by the Fed to change the money supply. Deficit spending refers to the government spending more money than it collects in revenue, which can have an impact on the overall economy, but it is not a direct tool utilized by the Federal Reserve. The Fed primarily 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