Which of the following would cause the money supply in the United States to expand?
A. a decrease in reserve requirements
B. an increase in the discount rate
C. the sale of U.S. government bonds by a Federal Reserve bank
D. an increase in the world supply of gold
Answer: A
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The private financial market where banks borrow and loan reserves to meet the minimum research requirements is called:
A) federal funds market. B) loanable funds market. C) discount loans market. D) repo market.
Positive incentives do not: a. increase benefits
b. result in an increased level of the related activity. c. reduce costs. d. discourage consumption.
Monetarists argue that government actions, particularly monetary policy, worsens the negative aspects of the business cycle
a. True b. False Indicate whether the statement is true or false
Adam Smith's invisible hand refers to
A) the government's unobtrusive role in ensuring that the economy functions efficiently. B) property ownership laws and the rule of the court system. C) the process by which individuals acting in their own self-interest bring about a market outcome that benefits society as a whole. D) the laws of nature that influence economics decisions.