Examples of Fed actions that could decrease money supply are making open market
a. purchases, increasing the required reserve ratio, and increasing the discount rate
b. sales, decreasing the required reserve ratio, and increasing the discount rate
c. sales, increasing the required reserve ratio, and decreasing the discount rate
d. sales, increasing the required reserve ratio, and increasing the discount rate
e. purchases, decreasing the required reserve ratio, and decreasing the discount rate
D
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Members of a cartel who refrain from selling at prices below the prices established by the cartel will usually
A) continue indefinitely to receive a high net revenue. B) discover other ways to attract additional customers. C) have no incentive to improve the quality of their products. D) not compete against one another. E) want to attract additional firms into the industry to increase the size of the cartel.
The restricted opportunity cause of poverty is due to government destroying incentives
Indicate whether the statement is true or false
If the nominal exchange rate e is foreign currency per dollar, the domestic price is P, and the foreign price is P*, then the real exchange rate is defined as
a. P/(Pe). b. P/(Pe). c. e(P/P). d. e(P/P),
Which of the following can create demand-pull inflation?
A. Excessive aggregate spending. B. Sharply rising oil prices. C. Higher labor costs. D. Recessions and depressions.