To increase the quantity of money in the economy, the Federal Reserve can
A) print more money and give it to the banks.
B) increase the required reserve ratio.
C) buy government bonds in an open market operation.
D) sell government bonds in an open market operation.
E) cut taxes.
C
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The construct used to demonstrate efficient use of society’s resources is the
A. production possibilities frontier. B. payoff matrix. C. input–output table. D. cost-benefit table.
Which role of the Federal Reserve was expanded directly as a result of the PDCF and TSLF?
A. Supervising banks. B. Lender of last resort. C. Fiscal agent for the federal government. D. Issuing currency.
Included in M2 are
A. credit cards. B. bank capital. C. bank loans. D. demand deposits.
Other things constant, when households decide to save more, the supply of credit ________ and interest rates ________
A) falls; rise B) falls; fall C) rises; rise D) rises; fall