Which of the following would cause an increase in M1?
A) a reduction in the required ratio of reserves to deposits
B) an increase in the discount rate
C) an open market operation where the Fed buys bonds
D) all of the above
E) none of the above
C
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A liquidity provider is someone who:
A. helps make a market more liquid by being always ready to buy or sell an asset. B. works at a bank and specializes in loans. C. works in the financial system. D. invest in the economy.
Many economists argue that higher real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) ________________ of the dollar and subsequent shifts in the U.S. AD curve and SRAS curve such that Real GDP will ___________________
A) depreciation; increase B) depreciation; decrease C) appreciation; increase D) appreciation; decrease
Which would cause an increase in the supply of a product at a given price?
a. An increase in the costs of producing a substitute product b. A reduction in the cost of resources to produce the product c. An increase in the costs of producing a complementary product d. An increase in the price of the product
The United States has a closed economy
Indicate whether the statement is true or false