The currency drain reduces the amount of

A) reserves available to banks to make loans.
B) currency the Fed has outstanding in the economy.
C) currency available for banks to borrow from the Fed.
D) the monetary base.
E) open market operations the Fed can make.


A

Economics

You might also like to view...

If the price level falls and the money wage rate does not change, some firms ________ and there is ________

A) shut down; a leftward shift of the aggregate supply curve B) start up; a rightward shift of the aggregate supply curve C) start up; an increase in potential GDP D) shut down; a decrease in the quantity of real GDP supplied E) shut down; a decrease in potential GDP

Economics

What is producer surplus? What does producer surplus measure?

What will be an ideal response?

Economics

What is economic value of an exchange?

Economics

Refer to the data provided in Table 9.4 below to answer the question(s) that follow.  Table 9.4qTFCTVCTCMCAVCATC0$100  $0$100  ----  --  11004014040  40  140  21006016020  30   80  31009019030  30    63.334100124  224  343156  5100180  280  56  36  56  6100  264    364  84  44    60.677100  372    472  108  53.14  67.42Refer to Table 9.4. If the market price is $40, then to maximize profits this firm should produce

A. two units of output. B. one unit of output. C. zero units of output. D. an output level of about four.

Economics