Which of the following actions by the Fed would increase the money supply?
a. Reducing the required reserve ratio.
b. None of the answers are correct.
c. Selling government bonds in the open market.
d. Increasing the discount rate.
a
You might also like to view...
When attempting to build a shopping center the size of several city blocks a developer anticipates a holdout problem in his preferred location. Which of the following is not an option the developer has available to get around the holdout problem?
a. Substituting to another location by building the shopping center on former farmland on the urban fringe. b. Lobbying the local government to use eminent domain on potential holdouts. c. Attempting to purchase the properties through dummy corporations to hide his true intent. d. Using contracts that increase everyone's sale price by a small percentage if everyone sells.
One way the government can boost the economy out of a recession is:
A. by increasing government spending. B. with public announcements telling the public to save their money. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
The most threatening and damaging detrimental externality at issue today is:
a. The explosion and oil spill at the Deepwater Horizon b. the continued pollution of city air due to factory emissions c. water shortages d. global warming
The ________ approach relies on the right discretionary policy to close the gap through a ________ of the aggregate demand curve
a. passive; decrease b. active; increase c. passive; increase d. active; decrease