The overall money supply would tend to increase if the Fed were to
A) increase the required reserve ratio.
B) increase the discount rate.
C) buy government bonds.
D) exchange crisp dollar bills for worn and tattered dollar bills.
C
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An interior solution to a consumer's utility maximization problem implies _________. (Select all that are true.)
the goods are perfect substitutes consuming more than an optimal amount of at least one good. consuming a positive amount of all goods. spending all income. spending less than full income. the goods are imperfect substitutes consuming a positive amount of one good and zero of the other good.
The two most important factors contributing to increased productivity in industrialized countries in the twentieth century were:
A. technological progress and increases in the capital stock. B. higher relative prices and technological progress. C. higher relative prices and a larger labor supply. D. technological progress and increases in the labor supply.
What would happen to U.S. economic welfare if the U.S. eliminated tariffs on solar panel imports?
a. U.S. economic welfare would increase because of the social gains from increased U.S. consumption of solar panels. b. U.S. economic welfare would decrease because the social gains from increased U.S. consumption of solar panels would be less than the social costs inflicted on U.S. solar panel producers. c. U.S. economic welfare would decrease because the social gains from increased U.S. production of solar panels would be less than the social costs associated with increased U.S. consumption of solar panels. d. U.S. economic welfare would increase because the social gains from increased U.S. production of solar panels would exceed the social costs associated with increased U.S. consumption of solar panels.
Which of the following is most likely an example of diseconomies of scale?
A. Alpha-Beta Inc. raised its price by 10 percent after a 5 percent increase in production costs. B. The XYZ Co. increased production capacity by 25 percent and experienced a 30 percent increase in its total cost. C. Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant. D. The per-unit costs on Excel Publishing Company's manuals fell after it received a large order from the government.