Which of the following would cause the money supply in the United States to decrease?
A. an increase in reserve requirements
B. a decrease in the discount rate
C. a purchase of U.S. government bonds by the Federal Reserve
D. an increase in the world supply of gold
Answer: A
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Steven lives in a big city where there is a shortage of parking. He has a parking spot in his driveway where he parks his car. Which of the following statements is most correct?
A) The opportunity cost of using the spot is zero, because Steven owns the house. B) Steven has a lower opportunity cost of owning a car than his neighbor, who must rent a parking spot. C) The opportunity cost of using the parking spot is the price he could charge someone else for using the spot. D) The opportunity cost depends on how much Steven's mortgage payment is.
Which of the following is not an example of an institution (rules of the game)?
a. formal rules of behavior b. government takeover of private corporations c. a constitution d. informal constraints on behavior e. traditions
The balance-of-payments identity is an equation that shows that the value of:
A. net exports equals the net capital outflow. B. net capital inflow equals the net capital outflow. C. imports must equal exports. D. payments from a country exceeds payments to a country.
There is evidence that the Fed, under chairman Ben Bernanke, engaged in inflation targeting.
Answer the following statement true (T) or false (F)