If the Fed wishes to increase the money supply, it could:
A. increase the discount rate.
B. buy bonds.
C. increase the reserve requirement.
D. print more currency.
Answer: B
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What will be an ideal response?
In the above table, if the marginal factor cost is $20, how many workers would be hired?
A) 3 B) 4 C) 5 D) 6
Which of the following is FALSE regarding bilateral monopoly?
A) Bilateral monopoly is a market structure consisting of a monopolist and a monopsonist. B) Bilateral monopoly is defined as a market structure in which a single buyer faces a single seller. C) An example of bilateral monopoly is a state education employer facing a single teachers' union in the labor market. D) The price outcome is easily determined.
Suppose the banks in the Federal Reserve System have $100 billion in transactions accounts, the required reserve ratio is 0.10, and there are no excess reserves in the system. If the required reserve ratio is changed to 0.15, the deficiency of reserves would be
A. $20 billion. B. $5 billion. C. $10 billion. D. $15 billion.