Which of the following is associated with a contractionary monetary policy?
A) raising bond prices
B) selling bonds
C) lowering the required reserve ratio
D) lowering the differential between the discount rate and the federal funds rate
B
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The Ramsey Rule implies that goods be __________ in consumption.
A. unrelated B. equal C. opposite D. moderate
Consider the market for nonalcoholic beers from the previous question. Cudweisers' price in a Nash equilibrium (assuming Bertrand competition in these differentiated beers) is about
a. 0.99 b. 1.09 c. 1.71 d. 2.55
Which of the following statements is true?
A. Supply is inelastic in the short run, whereas demand is inelastic only in the long run. B. Supply and demand tend to be much more elastic in the long run than in the short run. C. Supply is elastic in the short run, whereas demand is elastic only in the long run. D. Supply and demand tend to be much more inelastic in the long run than in the short run.
Refer to the diagram and assume the economy is operating at equilibrium point w. In the short run, an increase in the price level from P 2 to P 3 would move the economy from point w to point:
A. v.
B. x.
C. u.
D. z.