The level of GDP will tend to increase when:

a. The Federal Reserve buys government securities in the open market

b. There is an increase in the discount rate

c. The Federal Reserve sells government securities in the open market

d. Reserve requirements are increased


a. The Federal Reserve buys government securities in the open market

Economics

You might also like to view...

Property owned by governments is called:

A. Private property B. Shared property C. Public property D. Common property

Economics

By increasing transaction speed, electronic trading in stock markets has affected the trade off between size of market—which can reduce the search an investor must make to compare investments—and transaction speed

Indicate whether the statement is true or false

Economics

In Figure 5.1, the marginal utility of income is

A) increasing as income increases. B) constant for all levels of income. C) diminishes as income increases. D) None of the above is necessarily correct.

Economics

Eric is maximizing his total utility through his choices of two goods: clothes and food. His marginal utility of clothes is 60 and his marginal utility of food is 12. The price of clothes is $20. What must be the price of food?

A. 12. B. 6. C. 4. D. 1.

Economics