To close a recessionary gap, the Fed would
A. decrease the money supply.
B. sell bonds.
C. increase the money supply.
D. increase interest rates.
Answer: C
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The major difference between the lag in monetary policy versus the lag in fiscal policy stems from the
A) data lag. B) legislative lag. C) recognition lag. D) transmission lag.
The speculative demand for money
a. varies inversely with national income b. varies directly with national income c. involves holding money for unexpected problems d. varies directly with the transactions demand for money e. varies inversely with the interest rate
All of the following are economic explanations for why shopping carts have gotten bigger over the years.
a. more women in the marketplace have made spending time in the grocery store more costly. b. grocery stores now have a wider variety of items available. c. store owners are "tricking" customers in into buying more groceries by making them feel ashamed that their carts are not full. d. shoppers have become wealthier over the years and are willing to pay for the luxury of wide aisles and the big carts that go along with wider aisles.
The main component of the monetary union created by the Treaty of Maastricht is a(n)
A. single currency. B. gold standard. C. bilateral barter system of currencies. D. unified stock market.