The Federal Reserve System regulates the money supply primarily by:
A. controlling the production of coins at the U.S. mint.
B. altering the reserve requirements of commercial banks and thereby the ability of banks to
make loans.
C. altering the reserves of commercial banks, largely through sales and purchases of
government bonds.
D. restricting the issuance of Federal Reserve Notes because paper money is the largest
portion of the money supply.
C. altering the reserves of commercial banks, largely through sales and purchases of
government bonds.
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The government's main statistic for forecasting business cycles is the index of coincident indicators
a. True b. False Indicate whether the statement is true or false
Tax cuts shift aggregate demand
a. right as do increases in government spending. b. right while increases in government spending shift aggregate demand left. c. left as do increases in government spending. d. left while increases in government spending shift aggregate demand right.
Privatization of government agencies:
A. happens more frequently during recessions. B. has rarely occurred since the 1890s. C. has become less popular since the 1980s. D. has become more popular since the 1980s.
If a monopolistically competitive firm is making positive economic profits, we would expect
A. entry of other firms. B. the firm to continue making the positive economic profits. C. the firm to hire more labor. D. the firm to expand market share and the industry to move toward an oligopoly structure.