If the Federal Reserve wished to engage in contractionary monetary policy, it could
A. increase the primary credit rate.
B. increase the reserve ratio.
C. sell government debt.
D. all of the above.
Answer: D
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List the five approaches used to solve the problem of externalities
What will be an ideal response?
Revenue maximization occurs when a firm sells at a price
A) that is equal to its minimum average variable cost. B) where its marginal revenue is equal to its marginal cost. C) where its marginal revenue is zero. D) None of the above
By monitoring financial diaries of several of the world's poorest families, economists found that a challenge facing the poor was:
A. they did save any money to pay down debts. B. their income fluctuated a lot, in addition to being low. C. they often did not diversify their savings and had "their eggs all in one basket". D. All of these are true.
As shown in Exhibit 3, what is the total welfare from imports experienced by consumers and producers after free trade is allowed?
a. d
b. b + d
c. a + b + d
d. a + b + c + d