If the Fed were to change the reserve requirement in an effort to increase the money supply, they would:
A. increase the reserve requirement.
B. decrease the reserve requirement.
C. increase the discount rate.
D. open the discount window longer.
Answer: B
You might also like to view...
Consider two economies: A and B. If the gap between the growth rate of money supply and growth rate of real GDP is larger in country A than in country B, then according to the quantity theory of money:
A) the inflation rate will be lower in country A. B) the inflation rate will be higher in country A. C) real interest rates will be higher in country A. D) nominal interest rates will be lower in country A.
The downturn in the immigration cycle beginning in the 1850s is attributable to which group?
(a) Children (b) Grandparents (c) Women (d) Men
An increase in price:
A. cannot cause a quantity effect. B. cannot cause a price effect. C. causes a decrease in revenue resulting from selling fewer units and a simultaneous increase in revenue resulting from receiving a higher price. D. causes an increase in quantity demanded.
Real GDP is the most effective measure for determining the:
A. Income level per household. B. Change in the price level. C. Standard of living across countries. D. Growth rate of the economy over time.