Suppose the economy is at full employment with a high inflation rate. Which combination of government policies is most likely to reduce the inflation rate?
a. Buy government securities in the open market and decrease taxes
b. Buy government securities in the open market and increase taxes
c. Sell government securities in the open market and decrease government spending
d. Sell government securities in the open market and increase government spending
c. Sell government securities in the open market and decrease government spending
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Steep Upward-Slope of yield curve so expect _____ interest rates
Fill in the blank(s) with the appropriate word(s).
Congress has not been able to vote with clarity on a war in country X. It seems like there are three options that they consider. (1) They could negotiate the best agreement they can get and leave the area. (2) They could continue the air campaign. (3) They could continue the air campaign and send ground troops into the area. In terms of expense the options get increasingly expensive. If a representative from Illinois has a preference order of (1), (3), (2), we can say that
A. the representative does not have a voting preference. B. the median voter rule will not apply. C. the representative has a single peaked voting preference. D. it cannot be answered with the information given.
In conducting quantitative easing, the Fed may decide to purchase mortgage securities to do all of the following EXCEPT:
A. affect long-term interest rates. B. influence average home prices. C. reduce interest rates on home purchases. D. increase the amount of bank reserves.
What is the difference between total utility and marginal utility?
Please provide the best answer for the statement.