Which of the following policies by the Federal Reserve is likely to increase the money supply?
A. Reducing reserve requirements
B. Selling government bonds
C. Increasing the discount rate
D. Increasing interest on reserves
Answer: A
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Assume the market for cell phone service is initially in equilibrium. An increase in supply would cause a surplus at the initial equilibrium price
The market adjustment would then involve a decrease in price which would in turn cause quantity demanded to increase and quantity supplied to decrease until equilibrium is reestablished. Indicate whether the statement is true or false
In 2017, new bond issues and other forms of debt totaled ____ in corporate financing.
A. $650 billion B. $876 billion C. $1 trillion D. ?$2 billion
What term is used to denote a tax on imports?
a. gratuity b. ad valorem c. subsidy d. tariff
Suppose that a normal rate of return in the economy is 10% and the rate of return being earned by firms in a competitive industry equals exactly 10%. Which of the following is a correct prediction based on this information?
A. Firms already in the industry will want to expand to try to increase their rate of return. B. Firms in the industry will not undertake any investment projects other than to replace depreciating capital stock. C. The industry size will contract. D. New firms will want to enter this industry, as the existing firms are earning an economic profit.