The main purpose of expansionary monetary policy is to
A. expand Treasury borrowing.
B. increase reserve requirements.
C. insure deposits.
D. reduce interest rates.
Answer: D
You might also like to view...
Suppose that a person in the United States earns $5,000 and faces an income tax rate of 25 percent. If that person saves $2,000 and invests it at 12 percent then he or she will pay
A) less in taxes because of the saving. B) tax only on the income spent. C) more in taxes than if there had been no saving. D) tax only on the amount saved.
Which of the following best describes how economists test the empirical predictions of economic models?
A) Economists survey individuals to learn about how people think through decisions about how much to purchase or to produce. B) Economists collect and analyze real-world observations of people's actions to discern if those actions accord with theories' predictions. C) Based on theories about thought processes, economists seek to determine which thought processes predominate in determining how a person decides what actions to take. D) Recognizing that people always do what they say they will do, economists rely exclusively on information gleaned from polls and surveys conducted by poll takers and market researchers.
When government intervenes in the production process because external benefits exist, it typically attempts
A. to shift the market's demand curve to the left. B. to impose a tax on each unit produced. C. to shift the market's supply curve to the left. D. to shift the market's demand curve to the right.
Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 100 and that it is 150 in country B.) After immigration occurs, total business income in country B:
A. Increases by $475M
B. Increases by $50M
C. Decreases by $50M
D. Decreases by $475M