The lending ability of commercial banks increases when the:
A. Reserve ratio is raised
B. Treasury collects tax revenues
C. Fed sells securities in the open market
D. Fed buys securities in the open market
D. Fed buys securities in the open market
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According to your text, one reason for flat or falling achievement scores even in the face of substantially higher education subsidies may be that
A) the additional funds are being siphoned off by dishonest school board members. B) some of the funds are going to social services rather than to enhance learning activities. C) students are so unmotivated that no amount of spending will ever improve scores. D) most parents do not support the schools or their children's educational activities.
If the Fed wishes to reduce inflation then it should
a. increase the discount rate. b. decrease reserve requirements. c. buy government securities on the open market. d. Do any of the above.
A market failure that causes overconsumption of a product because the sellers know something negative about a product that the buyers do not know is called
A. imperfect information. B. collusion. C. regulatory capture. D. deadweight loss.
The Federal Trade Commission Act, as amended, prohibits
A) horizontal mergers. B) price-fixing agreements. C) unfair competitive practices and deceptive acts. D) price discrimination.