The Fed attempts to affect the level of borrowed reserves by
A) changing the discount rate.
B) changing legal reserve requirements.
C) open market sales.
D) open market purchases.
A
You might also like to view...
Demand pull inflation can be started by
A) a decrease in net exports. B) an increase in government expenditure. C) a decrease in the money price of resources. D) an increase in the price of oil. E) a decrease in the quantity of money.
M2 includes M1 plus
A) savings account balances, money market deposit accounts in banks, small-denomination time deposits, and noninstitutional money market fund shares. B) checking account deposits, large-denomination time deposits, and noninstitutional money market fund shares. C) currency in circulation, checking account deposits in banks, and holdings of traveler's checks. D) currency in circulation, savings account balances, and small-denomination time deposits.
Which of the following describes the substitution effect of a price change?
A) The change in quantity demanded of a good that results from the change in the price of a substitute for the good. B) The change in demand that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power. C) The change in quantity demanded of a good that results from the effect of a change in price on consumer purchasing power, holding everything else constant. D) The change in quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.
Alchemy was the attempt to discover a process by which base metals, such as lead, could be turned into gold. If an alchemist had been successful,
A) all the lead in the world would have been added to the world's gold supply. B) all the lead in the world would have replaced the world's gold supply. C) all the lead in the world would only have been added to the world's gold supply when it was converted to gold. D) the alchemist would likely have been killed by the owners of real gold.