If the Fed wanted to reduce the federal funds interest rate, it might:
a. increase the discount rate
b. increase the required reserve ratio.
c. buy government securities.
d. sell government securities.
c
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An economy's standard of living grows over the long run because of: a. better protection of domestic industries from foreign competition. b. centralized planning and decision making
c. technological improvements. d. stringent foreign trade policies. e. high growth rate of population.
Economists who propose a constant-money-growth-rate rule often argue that setting the annual growth rate in the money supply equal to the average annual growth rate in Real GDP
A) maintains price level stability over time. B) is a way to raise Real GDP. C) will cause the price level to fall over time. D) a and b E) a, b and c
Alternating periods of growth and contraction in real GDP define:
A. The business cycle. B. Capitalism. C. Inflation. D. Macro equilibrium.
Other things equal, which may cause an increase in the price of used houses?
a. An increase in construction costs for new houses b. An increase in property taxes c. An increase in mortgage interest rates d. A decrease in the population of first-time homebuyers