How can the Fed increase the money supply? How can the Fed decrease the money supply? Be specific.
What will be an ideal response?
To increase the money supply the Fed should buy U.S. government securities on the open market, reduce the discount rate and/or reduce the required reserve ratio. Do the opposite to decrease the money supply.
You might also like to view...
The seller of a call option has the
A) right to buy shares at a specified price. B) obligation to buy shares at a specified price if the option is exercised. C) right to sell shares at a specified price. D) obligation to sell shares at a specified price if the option is exercised.
A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. The chef's explicit costs are equal to_____.
a. ?$66,000 b. ?$78,000 c. ?$52,000 d. ?$72,000 e. ?$26,000
The CEO of a company repeatedly highlighted the performance of its rivals before introducing a proposal that required a major change in the organizational architecture. This implies that in marketing his proposal, he:
A. used force and coercion. B. relied on reputation. C. indulged in unethical business practices. D. emphasized a crisis.
Technology is defined as
A) new innovations and creations. B) the process of developing and revising models. C) the process of recycling products. D) the processes used to produce goods and services.