Which one of the following is to be a tool of monetary policy for altering the reserves of commercial banks?
a. Unemployment rate
b. Budget surplus or deficit
c. Tax rate
d. Discount rate
d. Discount rate
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A fundamental reason that governments provide public goods is that
A) those goods are subject to the free-rider problem. B) negative externalities are part of the production process of those goods. C) public goods are merit goods. D) those goods are perfectly divisible.
A natural monopoly exists whenever economies of scale are very extensive
a. True b. False Indicate whether the statement is true or false
Tax cuts shift aggregate demand
a. right as do increases in government spending. b. right while increases in government spending shift aggregate demand left. c. left as do increases in government spending. d. left while increases in government spending shift aggregate demand right.
In Macroland autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. The slope of the aggregate expenditures model line is
A. 0.75. B. 0.25. C. 320. D. 290.