How could the Federal Reserve encourage banks to lend out more of their reserves?
(A) By raising the required amount of reserves.
(B) By reducing the money supply.
(C) By reducing the discount rate.
(D) By increasing the prime rate.
Ans: (C) By reducing the discount rate.
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Refer to Table 19-30. Based on the table above, what is personal income for this economy?
A) $1,950 billion B) $2,030 billion C) $2,450 billion D) $5,130 billion
Peter Piper picks a peck of pickled peppers using 10 units of labor and two pepper-picking machines. The last worker hired picked 100 peppers, and the last machine added 1,000 peppers. If labor can be hired at $5 a pepper picker and machines cost $5,000, what advice do you have for Peter Piper?
What will be an ideal response?
What did the fiscal conservatives of the Eisenhower administration (1953–61) want?
(a) Balanced budgets and with manageable inflation (b) Inflation and budget surpluses (c) A balanced budget and high rates of interest (d) Laissez-faire economy
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.