Which of the following represents a tight monetary policy by the Fed?
A. The required reserve ratio increases, the discount rate increases, and the Fed buys government securities.
B. The required reserve ratio increases, the discount rate increases, and the Fed sells government securities.
C. The required reserve ratio increases, the discount rate decreases, and the Fed sells government securities.
D. The required reserve ratio decreases, the discount rate increases, and the Fed buys government securities.
B. The required reserve ratio increases, the discount rate increases, and the Fed sells government securities.
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During World War II, the U.S. government increased spending:
A. by less than it raised taxes. B. by more than it raised taxes. C. by the same amount as it raised taxes. D. but did not increase taxes.
The principal-agent problem arises in labor markets because:
A. a firm may realize excessively large profits. B. workers may provide less-than-expected work effort. C. compensating wage differences do not pay for differences in the nonmonetary aspects of jobs. D. human capital investments vary among workers.
The period in the business cycle from a ________ to a ________ is called an expansion.
A. trough; new trough B. trough; peak C. peak; new peak D. peak; trough
Which of the following is true? a. The Rule of 70 says that the number of years necessary for a nation to double its output is approximately equal to the nation's growth rate divided by 70. b. Economic growth is usually measured by the annual percent change in the nominal output of goods and services per capita. c. An increase in labor input necessarily increases output per capita
d. Neither the initial development process nor the sustained growth of an economy is dependent on a large natural resource base.