To decrease the nation's money supply, the Fed can:
A. decrease the reserve requirement.
B. buy bonds.
C. decrease the discount rate.
D. increase the discount rate.
Answer: D
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Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer
If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels, then using the midpoint method, the price elasticity of supply for barley equals A) 13.33. B) 26.78. C) 1.96. D) 0.51. E) zero.
Explain what the free market will do if exchange rates end up in the "right ranges."
What will be an ideal response?
In the summer of 1993, there were devastating floods in the midwestern portion of the United States where corn is produced. What effect do you think these floods had on the price of corn and beef? What do you think happened to Canadian corn farmers?
The most meaningful way to compare per capita Gross Domestic Product (GDP) across countries is to
A. first adjust each country's per capita Gross Domestic Product (GDP) to exclude all the goods and services that are not exchanged with other countries. B. first use purchasing power parity to factor in each country's true cost of living. C. use foreign exchange rates to convert each country's per capita Gross Domestic Product (GDP) into dollars. Then compare. D. assume that the cost of living in each country is the same as the United States' cost of living.