If the Fed has announced that it plans on increasing the interest rate it will
A. engage in contractionary open market operations, thereby increasing the money supply.
B. engage in expansionary open market operations, thereby increasing the money supply.
C. engage in expansionary open market operations, thereby decreasing the money supply.
D. engage in contractionary open market operations, thereby decreasing the money supply.
Answer: D
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The Fed seeks to promote stability of financial markets because
A) resources are lost when there is not an efficient matching of savers and borrowers. B) they want to lift the self-esteem of workers. C) unstable markets result in increased efficiency. D) Congress directed them to do so by the Employment Act of 1946.
What is the difference between "straight-time pay," "commission pay," and "piece-rate pay"?
What will be an ideal response?
Which of the following is true? a. Average cost pricing reduces the incentives for a monopolist to find ways to reduce its costs
b. With natural monopoly, if regulators allow the firm to earn profits, there will be a welfare cost from producing too little of the good. c. Government regulation of monopolies aims to achieve the efficiency of large-scale production, without permitting the producers to charge monopoly prices. d. All of the above are true.
If accounting profits are positive then economic profit is positive
Indicate whether the statement is true or false