Which of the following is associated with a contractionary monetary policy?
A. lowering the required reserve ratio
B. raising bond prices
C. selling bonds
D. lowering the differential between the discount rate and the federal funds rate
Answer: C
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The income effect of an increase in the price of peaches is
A) the change in the quantity of other fruit demanded that results from the impact of the price change on purchasing power, holding all other factors constant. B) the change in the quantity of peaches demanded that results from the effect of the change in price on consumer purchasing power, holding all other factors constant. C) the change in the demand for peaches as a result of the change in the price of peaches, holding all other factors constant. D) the change in the quantity of peaches demanded that results from the price increase, making peaches more expensive than other fruit, holding constant the effect of the price change on consumer purchasing power.
The law of diminishing marginal utility holds that at some point consumption of additional units of a commodity adds less to total utility
a. True b. False Indicate whether the statement is true or false
Suppose the domestic supply (QSU.S.) and demand (QDU.S) for bicycles in the United States is represented by the following set of equations:QSU.S. = 2PQDU.S. = 200 - 2P.Demand (QD) and supply (QS) in the rest of the world is represented by the equations:QS = PQD =160 - P.Quantities are measured in thousands and price, in U.S. dollars.After the opening of free trade between the United States and the rest of the world
A. neither the United States nor the rest of the world gain from trade. B. both countries gain from trade, but the United States gains more than the rest of the world. C. the net change in total surplus in the United States is zero, but the rest of the world gains. D. both countries gain from trade, but the rest of the world gains more than the United States.
In Latavia, cultural pressures cause voluntary donations to orphanages to be very large; in Slobovia, people make smaller donations. If the governments of both countries suddenly grant a tax break to those donating money to orphanages, the basic postulate of economics predicts that donations
What will be an ideal response?