If the Fed wanted to decrease the money supply, one way to make an enormous impact would be to:
A. increase the reserve requirement, which would decrease the money multiplier.
B. decrease the reserve requirement, which would decrease the money multiplier.
C. increase the reserve requirement, which would increase the money multiplier.
D. decrease the reserve requirement, which would increase the money multiplier.
A. increase the reserve requirement, which would decrease the money multiplier.
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The country with the highest degree of central bank independence in the period 1973-88 was ________
A) the United States B) New Zealand C) Spain D) Germany
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy's opportunity cost of producing one pound of cheese is ________ car(s).
A. 1/20 B. 250 C. 20 D. 1/250
Based on our understanding of the IS-LM model that takes into account dynamics, we know that a reduction in government spending will cause
A) an immediate drop in Y and immediate increase in i. B) an immediate reduction in i and no initial change in Y. C) a gradual reduction in i and gradual reduction in Y. D) a gradual reduction in i and an immediate reduction in Y.
Is it possible to see gains in a nation's real standard of living without any positive economic growth?
A. Yes, if workers can produce the same level of output in fewer work hours, so that more leisure time could push up the real standard of living. B. No, a nation's standard of living cannot improve without economic growth. C. Yes, but only if the government prints more money so people feel rich. D. None of these: Economic growth has nothing to do with a nation's standard of living.