Central banks can increase the money supply by:
a. Increasing the discount rate.
b. Selling government securities.
c. Buying foreign exchange.
d. Raising margin requirements.
e. All of the above.
.C
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The unemployment rate is calculated by dividing the number of unemployed and looking for work by the sum of the number employed and the number unemployed and looking for work
Indicate whether the statement is true or false
Product differentiation allows a firm to compete with another firm on the basis of
A) efficiency. B) elasticity. C) quality, price, and marketing. D) the level of output and the price. E) demand.
Under a system of flexible exchange rates, transactions that increase the supply of the nation's currency to the foreign exchange market will cause the nation's
a. currency to depreciate in value. b. currency to appreciate in value. c. trade deficit to increase. d. products to become more expensive to foreigners.
Which of the following represents an action by the Federal Reserve that is designed to decrease the money supply?
A. buying government securities in the open market B. an increase in federal tax rates C. a decrease in the required reserve ratio D. an increase in the discount rate