When the Fed wishes to reduce the economy's money supply, it
a. lowers the discount rate
b. lowers the legal reserve requirement
c. reduces the margin requirement
d. sells some of its government securities
e. prints more money
D
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If the European Central Bank increases interest rates
A) the demand curve for European euros shifts rightward and the supply curve of European euros shifts leftward. B) the demand curve for European euros shifts leftward and the supply curve of European euros shifts rightward. C) the demand curve for European euros and the demand curve for U.S. dollars both shift rightward. D) the demand curve for European euros shifts leftward and the demand curve for U.S. dollars shifts rightward.
An advertisement campaign that successfully convinces consumers to buy union-made products has the direct effect of shifting the
A) demand curve for union labor rightward. B) demand curve for union labor leftward. C) supply curve of union labor rightward. D) supply curve of union labor leftward.
A tax is efficient if it imposes a small excess burden relative to the tax revenue it raises
Indicate whether the statement is true or false
A shift of the MP curve ________
A) implies an automatic adjustment of the interest rate B) implies a direct policy action of the Federal Reserve C) does not alter the relationship between inflation and the interest rate D) all of the above E) none of the above