An increase in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate

A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases


Answer: D

Economics

You might also like to view...

Stockholders

A) select the managers of a corporation. B) select the employees of a corporation. C) select the board of directors of a corporation. D) all of the above.

Economics

If the United States purchases oil from Kuwait, what is the effect in the exchange market? a. It will increase the supply of U.S. dollars

b. It will decrease the supply of U.S. dollars. c. It will increase the demand for U.S. dollars. d. It will decrease the demand for U.S. dollars.

Economics

Which of the following is the main weakness of the classical model?

a. It assumes that the labor supply curve is vertical. b. It assumes that the labor supply curve is horizontal. c. It assumes that the labor market clears. d. It assumes that the labor demand curve is horizontal. e. It assumes that the labor demand curve is vertical.

Economics

A quota on imported avocadoes ______________ the price of avocadoes, _____________ consumers' surplus for avocado buyers, _______________ producers' surplus of avocado growers and __________________ tariff revenue. Because the loss to _____________ is more than the gain to ___________________, there is a net loss to society

A) raises; increases; decreases; generates; producers; consumers and government B) lowers; increases; decreases; does not generate; producers; consumers C) raises; increases; decreases; does not generate;consumers; producers and importers D) raises; decreases; increases; generates; consumers; producers and government

Economics