The federal bank of Plutonia raises the discount rate from 4 percent to 5 percent. Which of the following is likely to be a consequence of such an action?
a. Banks will lend aggressively, increasing the money supply in the economy
b. Banks will reduce the amount of loans, reducing the money supply in the economy.
c. Banks will increase the amount of loans, reducing the money supply in the economy.
d. Banks will lend aggressively, reducing the money supply in the economy.
b
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Economics studies the logic of choices made from among available possibilities.
Answer the following statement true (T) or false (F)
Refer to Figure 4.7. An equilibrium occurs when how many students ask for points?
A) 0 B) between 5 and 6 C) 12 D) all of the above
The resource income earned by those who supply ________ is called wages
A) labor B) natural resources C) entrepreneurship D) capital
The command economy of World War I (1914–18) possessed which of the following traits?
(a) Decentralized decision-making in the markets (b) The creation of many state agencies (c) Volunteers for the armed forces (d) Centralized decision making by bureaucrats