If the Fed were to change the reserve requirement in an effort to increase the money supply, they would:
A. increase the reserve requirement.
B. decrease the reserve requirement.
C. open the discount window longer.
D. increase the discount rate.
B. decrease the reserve requirement.
You might also like to view...
In the above figure, the market is at its equilibrium. Area A + area B is equal to
A) consumer surplus. B) total revenue. C) total surplus. D) marginal benefit. E) producer surplus.
Public goods, like national defense, are usually funded through government because: a. no one cares about them, because they are public
b. it is prohibitively difficult to withhold national defense from someone unwilling to pay for it. c. they cost too much for private firms to produce them. d. they provide benefits only to individuals, and not firms.
The vicious cycle of poverty refers to the fact that LDCs are poor because other countries do not want to buy their goods and services
Indicate whether the statement is true or false
Other things the same, if the expected return on U.S. assets increases, the
a. supply of dollars in the market for foreign-currency exchange shifts right. b. supply of dollars in the market for foreign-currency exchange shifts left. c. demand for dollars in the market for foreign-currency exchange shifts right d. demand for dollars in the market for foreign-currency exchange shifts left.