Which of the following will decrease the money supply?
A) an increase in the discount rate (relative to the federal funds rate)
B) an increase in the required reserve ratio
C) an open market purchase by the Fed
D) a and b
E) a, b, and c
D
You might also like to view...
When a profit-maximizing firm in a monopolistically competitive market is in long-run equilibrium,
a. the demand curve will be perfectly elastic. b. price exceeds marginal cost. c. marginal cost must be falling. d. marginal revenue exceeds marginal cost.
The objective of bank management is to
A. maximize stockholders’ profits by making risky investments and giving loans to borrowers who will pay the highest interest rates. B. refuse to make risky loans and make loans only to the safest borrowers. C. invest in the U.S. government securities and make loans only to established businesses. D. strike the appropriate balance between the attraction of bank profits and the need for bank safety.
From an economic perspective, when a student decides to attend another year of college, the student has concluded that the marginal:
A. benefits of attending college are greater than the marginal costs. B. costs of attending college will be subsidized by someone else such as parents or the government. C. costs of attending college have increased that year. D. benefits of attending college have decreased that year.
Answer the following questions true (T) or false (F)
1. In order to construct the budget line, one only needs to know the prices of the goods in question. 2. Normal goods are goods for which consumption falls (rises) when income increases (decreases). 3. The consumer is at equilibrium when the marginal rate of substitution is equal to the slope of the budget line.