A combination of a decrease in the discount rate and an increase in reserve requirements would:
a. increase the money supply

b. decrease the money supply.
c. leave the money supply unchanged.
d. have an indeterminate effect on the money supply.


d

Economics

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Economics

Merger guidelines developed by the U.S. Department of Justice and the Federal Trade Commission use the Herfindahl-Hirschman Index as a measure of concentration. This index measures concentration in an industry by

A) adding up the market shares of all firms in the industry, squaring this number and then dividing by the number of firms in the industry. B) squaring the market shares of each firm in an industry and then adding up the values of the squares. C) determining the market shares of the four largest firms in the industry, but unlike the concentration ratio, the Index includes sales in the United States by foreign firms. D) squaring the four-firm concentration ratio of the industry and dividing this number by the total number of firms in the industry.

Economics

An open economy is a national economy that

A) doesn't interact economically with the rest of the world. B) has a stock market that is open to traders from anywhere in the world. C) has extensive trading and financial relationships with other national economies. D) has established diplomatic relations with most other national economies.

Economics

Which of the following groups would most likely to benefit from inflation?

A. Borrowers B. Lenders C. Creditors D. Pensioners

Economics