What entity or entities take the necessary steps to increase or decrease the money supply?
a. commercial banks
b. the central bank
c. investment firms
d. pension plans
a. commercial banks
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
If a corporation earns a profit, how do owners of the firm share in the profit?
A) by selling any bonds or stocks owned and realizing a capital gain B) by raising the interest rate on bonds C) through coupon payments on that firm's bonds D) through dividend payments on shares of that firm's stock
The Cobb-Douglas production function is: Q = 1.4*L0.6*K0.5 . What would be the percentage change in output (%?Q) if labor grows by 3.0% and capital is cut by 5.0%? [HINT: %?Q = (EL * %?L) + (EK * %?K)]
a. %?Q = + 3.0% b. %?Q = + 5.0% c. %?Q = - 0.70% d. %?Q = - 2.50% e. %?Q = - 5.0%
The highest expenditure on a security item found in national spending at the federal, state, and local level is on
a. police b. fire c. corrections d. national defense e. Social Security