What's the most common way for a central bank to reduce the money supply?
A) Collect higher taxes
B) Sell bonds to the public
C) Buy bonds from the government
D) Buy bonds from the public
B
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Which of the following would NOT shift the U.S. aggregate demand curve?
A) a change in income in Canada B) a change in the quantity of capital in the United States C) an expectation that inflation will be lower in the future D) U.S. monetary and fiscal policy
Individuals in favor of privatization of Social Security believe that it would allow people to:
a. evade the exorbitant rates of Social Security taxes. b. substitute purchases of stocks and other financial assets for a portion of their Social Security taxes. c. lower their medical bill by taking extra precaution and care for their health. d. experience a lower inflation in healthcare services.
In perfect competition, _____
a. economic profits are eliminated by entry in the long run b. economic profits are eliminated by exit in the long run c. price is greater than marginal cost at the profit-maximizing equilibrium d. the marginal cost curve is perfectly elastic in the long run
How do outward-oriented policies affect a nation's productivity?