What is one thing the Fed can do to increase the money supply?
a. raise reserve requirements
b. increase the interest rate paid on reserves
c. buy bonds
d. increase the discount rate
c. buy bonds
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An import quota restricts ________ and is designed to protect domestic ________
A) exports; consumers B) exports; producers C) imports; consumers D) imports; producers
Suppose the Fed forecasts a reduction in excess reserve holdings by banks. It might offset the effect of this on the money supply by
A) buying government securities. B) lowering the required reserve ratio. C) lowering the discount rate. D) selling government securities. E) a, b, and c
In GDP, the largest dollar amount is
a) consumer spending b) rental payment c) net exports of goods and services d) gross private domestic investment e) government purchase of goods and services
When payroll taxes are raised, the firm's marginal cost curve shifts
A. Upward, and supply increases. B. Upward, and supply decreases. C. Downward, and supply increases. D. Downward, and supply decreases.