If the economy is inflationary, the Fed would most likely:
A. increase bank reserves by raising the discount rate.
B. increase bank reserves by buying government securities
C. decrease bank reserves by lowering the discount rate.
D. decrease bank reserves by selling government securities.
Answer: D
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In 2008, real GDP in the United States was $13,312 billion. In 2009, real GDP in the United States was $13,112 billion. What was the U.S. economic growth rate from 2008 to 2009?
A) -1.5 percent B) 1.5 percent C) 0.98 percent D) 0.12 percent E) $200 million
Why do financial intermediaries aid in the efficient operation of the economy?
a. Without them it would be difficult for small savers to lend to large borrowers. b. They lend funds to businesses at a zero interest rate. c. They print currency. d. They regulate the money supply. e. They engage in open market operations.
Which of the following is most likely to favor tariffs on imports?
Which of the following describes when government alter normal market activity?
A. Intervention B. Unprofitable outcome C. Innovation D. Market failure