If the Fed sells securities on the open market, this will
a. decrease banks’ excess reserves.
b. increase banks’ excess reserves.
c. leave banks’ excess reserves unchanged.
d. lower the reserve requirement.
a. decrease banks’ excess reserves.
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A forward exchange market contract obligates the owner to make a trade at a specified exchange rate a fixed number of days in the future
Indicate whether the statement is true or false
Suppose that the economy is operating in full-employment equilibrium along the vertical section of the aggregate supply curve. If the aggregate demand curve is reduced by $100 billion in order for the price level to decline by 5 percent, and if the marginal propensity to consume (MPC) is 0.75, then what change in taxes would generate the desired price reduction?
a. $300 billion. b. -$75 billion. c. -$33.3 billion. d. -$25 billion.
The central bank of the United States is the
a. Federal Reserve Banking System b. First National Bank c. Comptroller's Bank d. United States National Bank e. U.S. Treasury Bank
The price of one good produced by a multiproduct industry rises. For another good produced by that industry
a. the supply curve will shift to the left. b. the supply curve will remain constant. c. the supply curve will shift to the right. d. the demand curve will shift to the right.