The Fed can reduce the money supply by reducing
A) the currency—deposit ratio.
B) the monetary base.
C) reserve requirements.
D) the discount rate.
B
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Which of the following is not considered a barrier to entry?
a. large economies of scale b. control of inputs used in production c. a homogeneous product d. patents e. copyrights
Which of the following is a characteristic of a competitive market?
a. There are many barriers to entry. b. Firms sell differentiated products. c. Buyers and sellers are price takers. d. There are many buyers but few sellers.
The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. There is no external benefit
What is the marginal benefit to the citizen of Kaffenia who consumes the four hundredth pound of coffee each day? A) $1.00 per pound B) $2.00 per pound C) $3.00 per pound D) $4.00 per pound
In the above figure, if no government intervention occurs, at the unregulated competitive market equilibrium, there is an
A) external marginal benefit of $2. B) external marginal cost of $2. C) external marginal benefit of $1. D) external marginal cost of $3.