Which of the following represents an action by the Federal Reserve that is designed to decrease the money supply?
A. buying government securities in the open market
B. an increase in federal tax rates
C. a decrease in the required reserve ratio
D. an increase in the discount rate
Answer: D
You might also like to view...
When consumers decide to increase household debt, this action will
A. increase the amount consumed along a stable consumption schedule. B. shift the consumption schedule upward. C. decrease the amount consumed along a stable consumption schedule. D. shift the consumption schedule downward.
Summarize the effects of a production quota on the market price and the quantity produced
What will be an ideal response?
If the GDP price index rises from 100 to 110 to 115 over three consecutive years, it can be concluded that the inflation rate is decreasing
a. True b. False Indicate whether the statement is true or false
As the size of a nation's outstanding debt gets larger and larger relative to the size of the economy:
a. eventually it will become difficult for the country to borrow in global credit markets. b. the country will have to pay higher real interest rates in order to induce investors to purchase its bonds. c. at some point, the country will be more or less forced to bring spending into line with revenues in order to maintain the confidence of investors. d. all of these are correct.