Which of the following policy actions by the Fed would cause the money supply to decrease?
a. An open-market purchase of government securities.
b. A decrease in required reserve ratios.
c. An increase in the discount rate.
d. A decrease in the discount rate.
c
You might also like to view...
A multinational corporation sells its goods in many countries but manufactures them in only one
Indicate whether the statement is true or false
The price paid by buyers in a market will decrease if the government
a. increases a binding price floor in that market. b. increases a binding price ceiling in that market. c. decreases a tax on the good sold in that market. d. All of the above are correct.
Is it possible for the economy to be at full employment and still have some people who are unemployed?
A) No, full employment means that no one is unemployed. B) Yes, since full employment exists if the economy is operating at the natural unemployment rate and there is always some natural unemployment. C) Yes, since full employment exists if the economy is operating at the frictional unemployment rate and there is always some frictional unemployment. D) Yes, since full employment equals the sum of the cyclical unemployment rate and the natural unemployment rate, and there is always some cyclical unemployment. E) none of the above
Other things the same, in the open-economy macroeconomic model, if the exchange rate rises,
a. the demand for dollars shifts left. b. the demand for dollars shifts right. c. the quantity of dollars demanded falls. d. the quantity of dollars demanded rises.