Which of the following policies could the Fed use to lower the interest rate?
a. A tax cut.
b. Selling government securities.
c. Raising the discount rate.
d. Reducing the required reserve ratio.
d
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Refer to the scenario above. Which of the following shifts will increase the total cost?
A) Shift from apartment Close to Far B) Shift from apartment Far to Very Far C) Shift from apartment Very Close to Close D) Shift from apartment Very Far to Extremely Far
In the IS-LM-BP model, when the price variable decreases, the
A) LM curve shifts out. B) IS curve shifts out. C) LM curve shifts in. D) BP curve shifts up.
If the supply curve is perfectly inelastic and the demand curve is a downward sloping straight line, what is the effect of a consumer ad valorem tax on equilibrium price and quantity?
A) Price remains unchanged and quantity increases. B) Price decreases and quantity increases. C) Price decreases and quantity remains unchanged. D) Price and quantity decrease.
The economic theory of discrimination suggests that the practice of apartheid in South Africa should have
A. worsened the economic condition of only the blacks. B. worsened the economic condition of only the whites. C. worsened the economic condition of blacks, whites, and others. D. improved the economic condition of the whites.