The main effect of an increase in capital stock is a(n) _____
Fill in the blank(s) with the appropriate word(s).
rightward shift of the long-run aggregate supply curve.
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Limit pricing occurs when a firm sets price _________________.
The purpose of a financial sector is ________
A) to minimize the payments firms make to state and local governments B) to maximize the payments firms make to state and local governments C) to channel funds away from households and firms with surplus funds D) to channel monies into socially acceptable causes
If the Fed wishes to increase the money supply, it could:
A. buy bonds. B. increase the reserve requirement. C. increase the discount rate. D. print more currency.
Prior to 2008, the primary tool used by the Fed to control the money supply was
a. the manipulation of the required reserve ratio banks must hold against their checking deposits. b. the extension of loans to financial institutions. c. the buying and selling of stocks and corporate bonds. d. the buying and selling of U.S. Treasury securities.