If you were the Chairman of the Fed and faced inflation, you would most likely
a. increase commercial bank reserves by raising the discount rate
b. increase commercial bank reserves by buying government securities
c. decrease commercial bank reserves by lowering the discount rate
d. decrease commercial bank reserves by selling government securities
e. decrease commercial bank reserves by lowering the legal reserve requirement
D
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An oligopolistic industry in which one firm sets the price is
a. a cartel b. a duopoly c. a monopoly d. price leadership e. a price-discriminating duopolist
Who appoints the members of the Board of Governors of the Federal Reserve?
(A) The U.S. senate (B) The state legislatures of the states represented (C) The state governors (D) The U.S. President
One source of the supply of dollars in the world is
A) the purchase of U.S. exports by foreign residents. B) the sale of U.S. domestic assets to foreigner residents. C) U.S. imports of foreign merchandise. D) U.S. sales of gold to foreigner residents.
Individuals are allowed to deduct a percentage of their expenditures for health care from their taxable income if these expenditures are above a certain amount. This reduces the amount that must be paid in taxes. Allowing for these deductions would improve ________ of the federal income tax.
A. both vertical and horizontal equity B. the progressivity C. the horizontal equity D. the vertical equity