If the Fed wished to decrease inflation, it could:

A. increase the reserve requirement or conduct an open market sale.
B. increase the reserve requirement or conduct an open market purchase.
C. decrease the reserve requirement or conduct an open market sale.
D. decrease the reserve requirement or conduct an open market purchase.


Answer: A

Economics

You might also like to view...

Suppose that the technology used to manufacture laptops has improved. The likely result would be:

A. a decrease in quantity supplied of laptops. B. an increase in quantity supplied of laptops. C. a decrease in supply of laptops. D. an increase in supply of laptops.

Economics

Using the information in the table above, calculate the unemployment rate

A) 53.3 percent B) 30.8 percent C) 13.3 percent D) 7.7 percent

Economics

Robert and Neal are playing the ultimatum game, starting with $100 . Based on the coin toss, Robert is the player to propose a division of the $100 . If Robert acts as economic theory assumes and Neal acts as experimental evidence shows, Neal will

a. accept Robert's proposal of keeping $99 and offering Neal $1. b. accept Robert's proposal of keeping $60 and offering Neal $40. c. reject Robert's proposal of keeping $99 and offering Neal $1. d. reject Robert's proposal of keeping $60 and offering Neal $40.

Economics

Which of the following is graphed as a horizontal line across levels of real GDP in the aggregate expenditures model?

A.  The saving schedule B.  The investment schedule C.  The consumption schedule D.  The investment demand curve

Economics