Which of the following policies would most likely increase the money supply?

a. Selling government bonds
b. Raising the discount rate
c. Lowering tax rates
d. Lowering the required reserve ratio
e. Decreasing the prime lending rate


D

Economics

You might also like to view...

In the figure above, the demand is inelastic in the range of prices between

A) $3.50 and $4.50 per cup B) $2.50 and $3.50 per cup C) $1.00 and $2.00 per cup D) $2.25 and $4.50 per cup E) $2.75 and $3.75 per cup

Economics

Professor I.M. Dismal returns to campus in the fall to find that the bookstore is charging 10% more for the new economics textbooks he ordered this year compared to last year

On the basis of this information, and using the economic way of thinking, what can Professor Dismal clearly conclude? A) The economy has experienced a 10% inflation over the year. B) The economy has experienced a 10% deflation over the year. C) The economy has experienced a disinflation over the year. D) The economy has experienced a steady price level over the year. E) The bookstore is charging 10% more for the new textbooks he ordered this year compared to last year.

Economics

When uncertainty over the timing of death is added to the LCH, this ________ the planning horizon and ________ the MPC for transitory income

A) shortens, raises B) shortens, lowers C) lengthens, raises D) lengthens, lowers

Economics

In this situation, the monopoly's profits are:

a. 0.40. b. 0.16. c. 0.12. d. 0.08.

Economics