1.

Which of the following is NOT currently a conventional policy tool of the Federal Reserve?

A.

Short-term changes in income tax rates

B.

Interest payments on excess reserves

C.

Discount window lending

D.

Open market operations

2.

Which of the following are good examples of short run aggregate demand shocks in the US economy?

A.

None of these events, they are more likely aggregate supply shocks

B.

An export ban on Russian oil

C.

Tariffs on imports of intermediate production imports, due to US-China trade war

D.

A nationwide strike in the US retail industry

3.

Which of the following statements about the Federal Reserve's balance sheet is correct?

A.

The Fed can decrease the size of its balance sheet through open market purchases

B.

The Fed can increase the size of its balance sheet through open market purchases

C.

Loans to banks through the discount window do not affect the Fed's balance sheet

D.

Open market operations do not affect the Fed's balance sheet