A decrease in the discount rate would:
A) decrease bank borrowing of reserves and reflect an expansionary monetary policy.
B) decrease bank borrowing of reserves and reflect a contractionary monetary policy.
C) increase bank borrowing of reserves and reflect an expansionary monetary policy.
D) increase bank borrowing of reserves and reflect a contractionary monetary policy.
C
You might also like to view...
A person believes that real equality can only exist when political equality is coupled with economic equality. This person believes that democratic means should be used to distribute wealth evely throughout society. This person is a:
a) socialist b) communist c) capitalist d) authorian
Which of the following statements is most consistent with the benefits-received principle of taxation?
A. People with high incomes should pay more taxes than people with low incomes. B. A childless couple should not be required to pay taxes for the support of public schools. C. Prosperous corporations should pay substantial taxes even if they use few government goods and services. D. The best tax is the income tax.
Underemployment refers to
A. The same thing as unemployment. B. A person who is not able to use her full capabilities in her job. C. A discouraged worker. D. A person who is lazy and not working hard at her job.
Refer to the data provided in Table 16.4 below to answer the following question(s).Table 16.4 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.4Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$2$21$16$162 6 82 24 4031220332 724204044011253070548160Refer to Table 16.4. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade permits, how
many permits will be traded between the two firms? A. B will buy two permits from A. B. A will buy two permits from B. C. B will buy one permit from A. D. A will buy one permit from B.