Which activity of the Fed would tend to increase excess reserves throughout the banking system?
A) Purchases of government bonds on a mass scale
B) An increase in the required reserve ratio
C) An increase of the discount rate
D) Sales of government bonds on a mass scale
A
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Refer to Figure 10-5. "Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above
A) C to A B) A to B C) B to A D) B to C
Under a pure system of laissez faire, the government would not do which of the following?
a. prosecute criminals b. provide national defense c. punish those involved in conspiracies to fix prices d. establish minimum wages
According to the CPI basket, the largest item in the households' budgets is ?
A) apparel.
B) education.
C) food.
D) transportation.
E) housing.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.