Which of the following would constitute contractionary monetary policy by the Fed?
a. An increase in income tax rates, a cut in government spending, and an elimination of the investment tax credit
b. Open market sales of government securities, an increase in the discount rate, and an increase in reserve requirements
c. An increase in tariffs on imported goods and a decrease in foreign aid
d. Open market purchases of government securities, a cut in the discount rate, and an increase in reserve requirements
b
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Which of the following $1,000 face-value securities has the lowest yield to maturity?
A) a 5 percent coupon bond selling for $1,000 B) a 10 percent coupon bond selling for $1,000 C) a 15 percent coupon bond selling for $1,000 D) a 15 percent coupon bond selling for $900
The concepts of exogeneity, strict exogeneity, and predeterminedness
A) are defined in such a way that strict exogeneity implies exogeneity. B) can be used interchangeably. C) are defined in such a way that exogeneity implies strict exogeneity. D) correspond to endogeneity, strict endogeneity, and lagged endogenous variables.
Mo’s family earns $200,000 per year. Based on the table showing income distribution in the United States in 2017, they are in the ______.
a. third fifth
b. fourth fifth
c. top fifth
d. top 5%
Answer the following statement true (T) or false (F)
1) The larger the number of firms and the less the degree of product differentiation, the greater will be the elasticity of a monopolistically competitive seller's demand curve. 2) The economic profits earned by monopolistically competitive sellers are zero in the long run. 3) The excess capacity problem associated with monopolistic competition implies that fewer firms could produce the same industry output at a lower total cost. 4) The demand curve of a monopolistically competitive firm is more elastic than that of a pure monopolist.