An outright sale of government securities by the Fed
A) permanently increases bank reserves.
B) temporarily increases bank reserves.
C) permanently reduces bank reserves.
D) temporarily reduces bank reserves.
D
You might also like to view...
List four protectionist policies
What will be an ideal response?
Economists call the influences of the decisions of others on our decisions ________
A) peer effects B) moral hazard C) externalities D) cluster effects
To raise the most tax revenue, governments should consider taxing goods whose
a. income elasticity of demand is high b. price elasticity of demand is low c. income elasticity of supply is low d. income elasticity of demand is high e. cross elasticity of demand is positive
Suppose that the country of Xenophobia chose to isolate itself from the rest of the world. Its ruler proclaimed that Xenophobia should become self-sufficient, so it would not engage in foreign trade. From an economic perspective, this idea would
a. make sense if Xenophobia had an absolute advantage in all goods. b. make sense if Xenophobia had no absolute advantages in any good. c. not make sense as long as Xenophobia had a comparative advantage in some good. d. not make sense as long as Xenophobia had an absolute advantage in at least half the goods that could be traded.