The Fed would be pursuing a contractionary monetary policy if it was
A) selling bonds in the open market.
B) lowering the differential between the discount rate and the federal funds rate.
C) selling dollars in foreign exchange markets.
D) lowering the reserve requirement.
A
You might also like to view...
The most important purpose of a market is to
A. bring buyers and sellers together so they can argue. B. bring buyers and sellers together so they can barter. C. increase the sellers' wealth. D. bring buyers and sellers together so they can trade.
The U.S. real interest rate rises relative to the British real interest rate. British net exports ________ and the British exchange rate ________
A) increase; rises B) increase; falls C) decrease; rises D) decrease; falls
Suppose the state legislature in your state imposes a state licensing fee of $100 per year to be paid by all firms that file state tax revenue reports. This new business tax:
A) increases marginal cost. B) decreases marginal cost. C) increases marginal revenue. D) decreases marginal revenue. E) none of the above
A market failure occurs when
a. a market equilibrium is economically inefficient b. a market equilibrium is economically efficient c. perfect competition maximizes the sum of consumer and producer surplus d. crime is not completely eliminated e. involuntary exchanges are not completely eliminated