Reserves decrease if the Federal Reserve
a. raises the discount rate or auctions more credit.
b. raises the discount rate but not if it auctions more credit.
c. lowers the discount rate or auctions more credit.
d. lowers the discount rate but not if it auctions more credit.
b
You might also like to view...
Refer to Figure 9-3. What is the value of the deadweight loss as a result of the quota?
A) $5.25 million B) $8 million C) $17.25 million D) $20 million
Which of the following holds that business cycles are primarily due to changes in technology and does not invoke any monetary or demand-side forces?
A) the real business cycle theory B) the efficiency wage theory C) rational expectations hypothesis D) Keynesian economics
A patent gives an innovating firm how many years of legal protection from competition?
a. 1 year b. 5 years c. 10 years d. 20 years e. 23 years
In the short run, the profit-maximizing monopolistically competitive firm will produce the rate of output at which
A) P = MC. B) MR = MC. C) P = ATC. D) MR = ATC.