Which of the following will cause the U.S. money supply to expand?
a. a commercial bank uses excess reserves to extend a loan to a customer
b. a commercial bank purchases U.S. securities from the Fed as an investment
c. an increase in reserve requirements
d. an increase in the discount rate
A
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The vertical portion of the aggregate supply curve shows that at full employment an increase in the price level will:
a. not alter the economy's full-employment real GDP. b. increase the economy's full-employment real GDP. c. reduce the quantity of goods and services purchasers will demand. d. improve the overall efficiency of resource use.
If the graph shown is displaying a competitive labor market:
A. P* would represent how many people are employed in the market. B. Q* would represent the equilibrium wage. C. D would represent the workers' demand for jobs at each wage. D. Q* would represent the equilibrium number of workers in the market.
A right-to-work law is
A. a state law making the union shop illegal. B. a state law making the open shop illegal. C. a federal law making the union shop illegal. D. a federal law making the closed shop illegal.
One way to decrease leverage is increasing capital
a. True b. False.