If the Federal Reserve raises the discount rate, the market rate of interest
a. will rise but the monetary base will be unchanged.
b. will rise and the monetary base will fall.
c. and the monetary base will both rise.
d. will fall and the monetary base will rise.
B
You might also like to view...
If real GDP in 2016 (using 2009 prices) is lower than nominal GDP of 2015, then
A) prices in 2016 are higher than prices in 2015. B) prices in 2016 are lower than prices in 2015. C) real GDP in 2016 is larger than real GDP in 2015. D) nominal GDP in 2016 equals nominal GDP in 2015.
Which of the following would shift the production possibilities frontier outward?
a. a reduction in inefficiency b. a reduction in the size of the labor force c. an improvement in technology d. a change in the combination of goods produced e. increasing opportunity costs
Education makes workers aware of the latest production techniques and more receptive to new approaches and methods
a. True b. False Indicate whether the statement is true or false
Which of the following transactions would be governed by the rules of the EEC?
a. Russia's trade with Canada b. the U.S.'s trade with Russia c. Brazil's trade with Bolivia d. France's trade with Greece e. China's trade with Japan