If the Fed wished to decrease GDP, it could:
A. increase the reserve requirement or conduct an open market sale.
B. increase the reserve requirement or conduct an open market purchase.
C. decrease the reserve requirement or conduct an open market sale.
D. decrease the reserve requirement or conduct an open market purchase.
Answer: A
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The largest part of what the United States produces today is ________ such as ________
A) goods; food and electronic equipment B) goods; education and entertainment C) services; trade and health care D) services; textbooks and computers
Explain two ways by which the Federal Reserve System can increase the monetary base. Why is the effect of Federal Reserve actions on bank reserves less exact than the effect on the monetary base?
What will be an ideal response?
Median income is the:
A. in the level earned by the household exactly in the middle of the national income distribution. B. the total national income divided by the total number of households. C. the total national income divided by the total population. D. 50% of the top quintile level of income.
Which of the following is not a function of money?
a. Standard of deferred payment. b. Medium of exchange. c. Legal tender. d. Store of value. e. All of the above are functions of money.