If a Central Bank wishes to increase the supply of money, it should:
(a) Reduce the reserve requirement;
(b) Reduce the rate of discount (Bank rate);
(c) Buy government bonds in the money market;
(d) Do any, or all, of the above.
Answer: (d) Do any, or all, of the above
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If the risk associated with a particular outcome is ________, or the value of a particular outcome is ________, then cost-benefit analysis might lead people to take precautions that are not cost-justified
A) overestimated, overestimated B) overestimated; underestimated C) underestimated; overestimated D) underestimated; underestimated
Of the determinants of labor productivity, the more important one is
A) the capital-labor ratio. B) the size of the labor force. C) total factor productivity. D) the hours worked by the labor force.
What might an "anti-inflation hawk" do so that good macroeconomic performance is likely to continue under his or her successors as head of the central bank?
What will be an ideal response?
A decrease in quantity demanded is given by a(n)
a. downward shift of the demand curve b. upward shift of the demand curve c. downward movement to the right along the demand curve d. upward movement to the left along the demand curve e. downward shift of both demand and supply curves