To increase the money supply, the Federal Reserve could
A) lower the discount rate.
B) decrease income taxes.
C) raise the required reserve ratio.
D) conduct an open market sale of Treasury securities.
Answer: A
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Larry and Mike are equally skilled construction workers employed by the Brown and Root Company. Larry's job is riskier because he typically works on a scaffold 1,000 feet above ground. Larry's higher wage rate is the result of
A) economic discrimination. B) a negative feedback loop. C) a compensating differential. D) a higher marginal revenue product.
The most important indirect taxes in the United States are
a. federal and state income taxes. b. inheritance taxes. c. corporate profits taxes. d. sales and property taxes.
Explain the forces that can cause an exchange rate to change.
What will be an ideal response?
Common property is
A. a resource that everyone is free to use as much as they want. B. generic property as opposed to specific property. C. property owned by a group such as a club or a church. D. property that belongs to both spouses in a marriage.