To decrease the money supply the Fed can:
A. Reduce the reserve requirement, raise the discount rate, or sell bonds.
B. Raise the reserve requirement, raise the discount rate, or sell bonds.
C. Raise the reserve requirement, reduce the discount rate, or buy bonds.
D. Raise the reserve requirement, raise the discount rate, or buy bonds.
B. Raise the reserve requirement, raise the discount rate, or sell bonds.
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Economists use GDP to determine
A) the economic performance of a country over time. B) the well-being of a country's citizens. C) the financial stability of a nation. D) the overall money supply within a nation. E) all of the above.
If workers and firms expect that inflation will be 5 percent next year, and real wages are not changing over time, by how much will nominal wages increase?
A) less than 5 percent B) more than 5 percent C) 5 percent D) depends on actual inflation for next year
When it comes to active policy making most economists agree that
A) active policy making should be used over passive policy making. B) it is unlikely that active policy making will have any long term effects on the economy. C) it is likely that active policy making will have long term effects on the economy. D) it will lead to long term shocks in the system.
Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?
A. Per capita GDP. B. Real GDP. C. GDP. D. Economic growth.