If you were the chairman of the Fed and had to develop effective countercyclical monetary policy during a recession, you would lower
a. the legal reserve requirement, cut the discount rate, and sell government bonds on the open market
b. the legal reserve requirement, raise the discount rate, and sell government bonds on the open market
c. the legal reserve requirement, raise the discount rate, and buy government bonds on the open market
d. the discount rate, cut the discount rate, and raise the margin requirement
e. the reserve requirement, lower the discount rate, and buy government bonds on the open market
E
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Denise is shopping for lobsters and eclairs. When she faces budget line b1, she chooses market basket A over market basket B. When she faces budget line b2, she chooses basket B over basket C
Which assumption of consumer theory helps us determine Denise's preference ordering over basket A and basket C? A) Completeness B) More is better than less C) Transitivity D) Convexity
A speculative attack:
A. can occur with any currency. B. can occur to currencies with floating exchange rates. C. can occur to currencies with fixed exchange rates. D. are illegal and no longer occur.
The Federal Open Market Committee consists of
a. the president and the Board of Governors. b. Congresspeople, Senators, and the Board of Governors. c. the Secretary of the Treasury and the Board of Governors. d. the Board of Governors and five district bank presidents.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.