Possible ways for the Fed to increase the money supply include ________ the rediscount rate and ________ reserve requirements
A) lowering, lowering
B) lowering, raising
C) raising, lowering
D) raising, raising
A
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Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Nigel's opportunity cost of producing one bandana is
A) 1/4 of a hair pin. B) 2/5 of a hair pin. C) 2.5 hair pins. D) 4 hair pins.
Which of the following countries has a long history of foreign trade and a high level of trade?
a. Brazil b. India c. Sweden d. United States
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and monetary base in the context of the Three-Sector-Model? a. The real risk-free interest rate falls and monetary base falls
b. The real risk-free interest rate rises and monetary base falls. c. The real risk-free interest rate and monetary base remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables.
If there are only two goods in the economy, one whose price rises by 1 percent and one by 6 percent, it is possible that inflation is:
A. 6 percent. B. 1 percent. C. 2 percent. D. 7 percent.