Which of the following tools of monetary policy is used least often?
A) open market operations
B) setting the required reserve ratio
C) setting the discount rate
D) acting as a lender of last resort
Answer: B
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Refer to the table above. Net exports equal
A) -$2,800 billion. B) $2,800 billion. C) $200 billion. D) -$200 billion. E) $400 billion.
An economy is an organization that produces goods and services and then allocates those goods and services to its members
Indicate whether the statement is true or false
What can the Federal Reserve do to reduce the natural rate of unemployment?
A) nothing B) follow expansionary monetary policy that will reduce inflation C) follow expansionary monetary policy that will increase inflation D) follow contractionary monetary policy that will increase inflation
Anything that influences a good's price or the marginal physical product of labor will influence wages
a. True b. False Indicate whether the statement is true or false