If there is a recession, the Fed would most likely
a. encourage banks to provide loans by lowering the discount rate
b. encourage banks to provide loans by raising the discount rate
c. restrict bank lending by lowering the discount rate
d. restrict bank lending by raising the discount rate
e. restrict bank lending by lowering the federal funds rate
A
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Refer to the figure above. Which of the following is true?
A) Firm 2 should follow Strategy X if Firm 1 follows Strategy X. B) Firm 2 should follow Strategy Y if Firm 1 follows Strategy Y. C) Firm 2 should follow Strategy X if Firm 1 follows Strategy Y. D) Firm 1 should always follow Strategy X.
Both Keynesians and supply-siders believe that tax cuts
a. will increase income by increasing aggregate supply. b. will increase income by increasing aggregate demand. c. will increase income but for different reasons. d. will increase income in the Keynesian model but decrease income in the Supply-side model.
Which of the following is an example of a vertical merger?
A) Northeastern Illinois University merging with McDonald's. B) Northeastern Illinois University merging with a training academy for new professors. C) Northeastern Illinois University merging with Roosevelt University. D) Northeastern Illinois University going from a public to a private university.
If input prices fall, it will lower the cost of production, causing the supply curve to shift to the right
a. True b. False Indicate whether the statement is true or false