The Fed can change the equilibrium rate of interest by changing
A. Taxes.
B. Government spending.
C. Tariffs.
D. Reserve requirements or the discount rate, or through open market operations.
Answer: D
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Money is a medium of exchange in that
A) money is generally accepted for buying and selling goods and services. B) currency may be exchanged for gold at any national bank. C) other assets may be better or worse in facilitating exchange than money. D) it must maintain most of its value over time.
A tax on insulin is likely to cause a very large deadweight loss to society
a. True b. False Indicate whether the statement is true or false
If the price of domestically produced power tools increases, then
a. the consumer price index and the GDP deflator will both increase. b. the consumer price index will increase, and the GDP deflator will be unaffected. c. the consumer price index will be unaffected, and the GDP deflator will increase. d. the consumer price index and the GDP deflator will both be unaffected.
For most products, purchases tend to fall with decreases in buyers' incomes. Such products are known as:
A. Inferior goods B. Direct goods C. Average goods D. Normal goods