Under which circumstance is the Fed most likely to carry out a defensive open market operation?
A) to prevent an increase in inflation
B) if a snowstorm results in a delay in check clearing, resulting in an increase in the Federal Reserve float
C) to defend the value of the U.S. dollar on the foreign exchange market
D) to prevent the negative impact of a demand shock
B
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Please consider Table 22-2 below. Assuming constant Annual Average Growth Rate in the future, calculate the output per capita for the United States and South Korea for the year 2040
What will be an ideal response?
Which of the following is not a component of M1?
A. Currency B. Passbook savings account C. Checking accounts D. Traveler's checks issued by non-banks
What impact will a negative supply shock have on the main measures of economic performance?
A. Real GDP will increase, inflation will increase, and unemployment will decrease B. Real GDP will decrease, inflation will decrease, and unemployment will increase C. Real GDP will decrease, inflation will increase, and unemployment will increase D. Real GDP will increase, inflation will decrease, and unemployment will decrease
Given a downward-sloping linear demand curve, if total revenue decreases as quantity rises, marginal revenue must be:
A. Positive and demand is elastic B. Negative and demand is elastic C. Positive and demand is inelastic D. Negative and demand is inelastic