The central government of Vervia believes that the economy is headed toward an economic slowdown, with all the major parameters of economic growth showing signs of slowing down. In such a satiation, the central bank of the economy is likely to:
a. start buying government bonds.
b. increase the discount rate
c. start selling government bonds.
d. increase the reserve requirement.
a
You might also like to view...
What is the disadvantage of average-cost pricing?
What will be an ideal response?
Answer the following statement(s) true (T) or false (F)
1. It is rare that actual and potential real GDP are equal. 2. The potential output in the United States grows over time, so the LRAS is shifting leftward over time. 3. Cost-push inflation causes an inflationary gap. 4. The classical school is associated with French economist John Maynard Keynes. 5. Economists continue to debate the actual shape of the short-run aggregate supply curve.
Toothpaste and toothbrushes are substitute goods.
Answer the following statement true (T) or false (F)
Why is the monopoly total welfare lower than the competitive total welfare?
What will be an ideal response?