During the stock market crash of October 1987, the Fed
a. raised the discount rate.
b. raised reserve requirements.
c. increased lending to member banks.
d. sold government securities.
c
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One objection to the notion of Ricardian Equivalence is that ________
A) households will recognize that a tax cut today will only lead to a tax increase in the future B) individuals are short-sighted in their spending decisions C) borrowing constraints have largely been eliminated due to financial innovation in the provisioning of consumer credit D) households typically save most of the monies received from a tax cut
A(n) ____ may offer products that are either differentiated or identical
a. monopolistically competitive firm b. monopolist c. oligopolistic firm d. perfectly competitive firm e. monopsonist
When the qualities of a good are relatively easy to assess in advance of their purchase, the good is known as
Under the gold standard system, 1 ounce of gold was worth $23 in the United States and worth 15.5 pounds in Great Britain. If the price of gold in Great Britain decreases by 10%, then:
A) the new exchange rate would show approximately 10% depreciation of the dollar. B) $1 = 1.64 pounds. C) 1 pound = $1.64. D) the new exchange rate would show approximately 10% depreciation of the dollar, and 1 pound would be equal to $1.64.