To increase the money supply, the Fed can
a. buy government bonds or increase the discount rate.
b. buy government bonds or decrease the discount rate.
c. sell government bonds or increase the discount rate.
d. sell government bonds or decrease the discount rate.
b
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The federal income tax system is regressive.
Answer the following statement true (T) or false (F)
Monopolistically competitive firms offer consumers more variety than perfectly competitive firms.
Answer the following statement true (T) or false (F)
A bank is legally required to hold a fraction of its ________ as ________
A) deposits; required reserves B) deposits; excess reserves C) loans; excess reserves D) loans; required reserves
Oligopolists merge to ________
A) increase market supply B) increase market demand C) increase market power D) reduce prices