Which of the following policy actions by the Fed would cause the money supply to increase?
a. An open market sale of government securities.
b. An increase in required reserve ratios.
c. A decrease in the discount rate.
d. All of these.
c
You might also like to view...
The money demand curve slopes: a. downward because the cost of holding money decreases as the interest rate decreases
b. downward because the cost of holding money increases as the interest rate decreases. c. upward because people demand more money as real GDP increases. d. upward because people demand more money as real GDP decreases. e. downward because people demand more money as the price level decreases.
In a market where the tragedy of the commons arises, the equilibrium quantity is both individually ________ and collectively ________.
A. inefficient; rational B. irrational; efficient C. rational; inefficient D. efficient; irrational
An increase in the wage rate of diamond cutters will increase the supply of cut diamonds.
Answer the following statement true (T) or false (F)
Assuming a perfectly competitive market implies that households do not need knowledge of qualities and prices of everything available in the market.
Answer the following statement true (T) or false (F)