To decrease the money supply, the Federal Reserve could
A) lower the discount rate.
B) raise income taxes.
C) lower the required reserve ratio.
D) conduct an open market sale of Treasury securities.
E) raise transfer payments.
Answer: D
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Normative economic statements refer to what should be
a. True b. False
Peruvian economist Hernando de Soto claims the ___________ in Latin America results in "dead capital."
A. weak titling system B. strong titling system C. general lack of strong national defense D. generally weak currencies
In a free trade area, member nations have no trade barriers among themselves but are free to set their own trade policies toward nonmembers
a. True b. False Indicate whether the statement is true or false
In the above figure, if we start at AD1 and SRAS1, and the money supply increases unexpectedly, what would be the short-run equilibrium even with rational expectations?
A. E3 B. P1 C. E2 D. E1